Goldman Sachs and Finnies Steamrolling the Market

It was pretty obvious how these past few weeks were going to play out.  Tech is a little tired, there are a few weak sectors, materials are flying again due to a halt in the $USDX rally, but it’s the financials that are leading this market higher.  After spending almost 6 months in a coma, the finnies are waking up as we approach earnings season, led by none other that Goldman Sachs $GS.  For disclosure I have a good sized position in $GS in the momo book and still a 1/4 of my swing trade position left.

As the financials go so will go this market, and just as they have been for the last three quarters, they will get bid up into earnings.  Take a look at the sector leaders from the past week.

Look for this trend to continue for the next week or two.  Stick to the emerging market banks, they are on fire right now, Brazil and India are where you want to be, and if you can find some solid financials in China play those.  Materials driving the Russian train.

Trading is never easy, but the $GS call felt like a layup, and it just keeps running.

my stop on the last 1/4 position now under today's low

my stop on the last 1/4 position now under today's low

The break of that downtrend line was very obvious

Meredith Whitney keeps lowering estimates and price targets on the financials, she’s been wrong now for two solid weeks.  I hate to play against her because she is the axe, but I think even she is about to get run over by this market, which may signal that there are in fact, NO BEARS LEFT!

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