Goldman Sachs Cut Off at Knees
But further amputation could be forthcoming.
Hello from the NASDAQ, where "agreeing to do two Fast Money's a day during the Olympics" is one of those things you say yes to months in advance, only to realize the horrifying toll it takes much later (see also: "Hosting a Baby Shower" and "Investing in China").
Here's what I'm watching (when not commuting or being made-up):
- Keep your eyes on Fluor (FLR) into the close and throughout the week. I agree with my friend Dennis Gartman: When assets can't go up on what should be very good news, it's time to be cautious. There are plenty of decent examples of this point. I'll stick to Arch Coal (ACI) and US Steel (X) as 2 companies that couldn't have crushed EPS harder and sold off in straight lines.
- Going down on obviously bad news today is Goldman Sachs (GS). Goldman is having about the reaction one might expect when the John Henry and Paul Bunyan of financial analysts take estimates down by more than 1/3. I don't think the reaction is "overdone" enough to buy Goldman - in fact, I'm actually worried that the timing suggests that the company's only doing a soft warning. And, yes, I'd buy Goldman again if it got back to the low 150s.
- Just in the interest of "picking on them" every day: The Ag names are doing well today, and they've certainly earned it after the selling of the last few weeks. Suffice it to say -- even for long-term bulls -- I think there are better opportunities out there than chasing this crew -- Potash (POT), Mosaic (MOS), Agrium (AGU), to name but three -- on an up multi-point day.
- While we're being provocative, check out Professor Sedacca's thoughts on Apple (AAPL). Big picture: Who am I to argue? Small picture, Dell (DELL) attempting to do anything creative makes me think Apple's a trading buy.
- Ethanol Demand Could Spark New Bull Market for Corn. I weep for traders rooting for "new bull markets" before the last ones have even been buried - and for countries who actively throw taxpayer dollars into something so obviously not the solution to the energy crisis. Since I have plenty of pity for both of them, that column was like the end of Brian's Song to me.
- Personal Mailbag for someone we'll simply refer to as "Dot Barrison," to protect his privacy:
You can call yourself "camera-friendly," "a popular commentator" or "a communication's escort." A rose who appears on television multiple times a day is still a rose and you, my friend, are a Media Hussy. Embrace it, and just try to be the best darn hussy you can.
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