- Health care stocks tanked after reform was passed. The knee jerk reaction will be to sell financial stocks once reform passes.
- Citigroup is the most important financial as it captures the imagination of investors. The government will be selling shares for the next few months and that should put a lid on Citigroup.
- The stocks have run so far that even if they fall back to support that could be a huge hit.
Goldman Okay But Rest Of Financials Not
While I think Goldman Sachs is very likely to make a short term low on these Senate hearings, I think the financials are a horrible bet right now. My reasons are as follows: