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Wednesday, April 9, 2014

Debating $gs

Over the last few days the chatter turned negative for the banks. Main reason is Q1 low trading volume. The low volume is apparently to set the tone for the rest of the year. With the negativity, GS has now approached tangible book value.

GS is already at a longer-term oversold condition.

The monthly suggest mid 140s is viable via the 98sma.

Glodal GDP is still rising. The biggest threat right now is geopolitical via Putin-bear. US GDP is growing. As such, tangible book will continue to rise. 

At current levels there appears to be less down side risk. 

My current play: maintain a minimal position, but go heavy at the 98sma for the bounce.

PS... Potential future increased earnings, aside from increased business from an improving economy, should come when the GSEs are dismantled and the private sector picks up the business. 

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