Capitulation

We are starting to see the capitulation I wrote about in my opening piece. Commodities are getting sloppy. If the market initially sells off on the FOMC announcement I will likely start the process of bulking up on longs. I want to leave room for additions because this phase could last a few days.

7 comments:

CP said...

What longs would you bulk up on? What do you see that is attractively priced?

Tsachy Mishal said...

Its a trade. Probably just ETFs.

Tsachy Mishal said...

Goldman would be very attractive if it gets close to 140.

Anonymous said...

Don't you worry about a backlash against Goldman? They are really unusually privileged thanks to endemic corruption in this country?

Tsachy Mishal said...

We are a country with laws. There is only so much they can do within those laws. They are talking about banning prop trading. That accounts for 10% of GS earnings. The stock is down much more than 10%.

Anonymous said...

I'm pretty sure GS makes more than 10% of earnings from prop trading.

Anonymous said...

It's more than that - these banks are able to speculate with government money via deposit insurance.