Will Goldman Lead

  • Goldman is higher despite Barclays taking an ax to second quarter numbers, following other analysts in the past few weeks. Will the tape follow Goldman and rally on bad housing numbers?
  • There is put buying and very loud growling by the bears.
  • The bears can take solace in the fact that the economy is deteriorating more rapidly than most believe. 

5 comments:

Onlooker said...

The casino stocks, LVS & MGM, have been rather inexplicably strong lately and this morning. Go figure. That's one I really don't understand. Of course I've never understood the appeal of the whole thing myself so I have a bias here.

nicasurfer said...

Casino stocks do well in recessions.

I have been accumalating mpel

Anonymous said...

Apparently the home builders are leading with all the majors up today! Go figure.
Also I am noticing that AOB which has performed horrendously, has bounced over 5 percent today and one commenter on the always brilliant Yahoo message board predicted this based on Russell 2000 rebalancing. Any experience with this as a potential supply and demand play?
Praguer

Tsachy Mishal said...

The only way I have ever played the Russel rebalancing is to short the Russell 2000 a few weeks ahead.

Some estimate that the rebalancing costs indexers 1%-2% a year. Unlike the S&P the rebalancing happens all at once so it is a lot easier to capture it. The Russell has been relatively weak lately even though the market has been rallying. Maybe people are already frontrunning. Better to do it before everybodys talking about it. I have never played the individual stocks.

Tsachy Mishal said...

I stay away from casinos and casino stocks or at least I try to.