Two Ways To Play: All That Glitters Isn't Goldman
Strengthen your portfolio in good times and bad.
Goldman Sachs Surprise
Goldman Sachs (GS), the best-of-breed former investment bank known for sidestepping most of the blowups that have hit its rivals, is likely to report a fourth-quarter loss of $2 billion.
The loss amounts to roughly $5 per share, and, according to the Wall Street Journal, is approximately 5 times greater than what analysts were expecting. It's true many were bracing for Goldman's first loss since going public almost a decade ago, but nobody expected this. "The last two weeks have been nothing short of horrible, with asset prices coming under ever more pressure than before, " said Susan Katzke of Credit Suisse.
Goldman is set to report on December 16th.
From the Bull Pen: Until the fundamental picture improves, bulls need to take a tactical approach. Nonetheless, a contrarian play may exist in the Ultra Financials ETF (UYG). A sell stop can be set below $4.
From the Bear Cave: The possibility exists for stocks to rally though the holiday season. So bears can consider Deutsche Bank (DB); initiate a downside position on a trade up to $40.
Quick Check Around the World
Asian trading closed with the Hang Seng -4.98%, Nikkei -6.53%, Sensex -1.14%, Taiwan -3.57% and Shanghai -0.26%.
Glancing towards Europe, we see the CAC 0.97%, DAX 1.86%, FTSE 0.69%
As of 8:30 a.m. EST, S&P futures are trading +13 to 829, and Nasdaq futures are +14 to 1108.
A Look At Commodities
Crude oil is trading -0.04 to 49.23. Gold is +4.50 to 779.10. Silver is +0.145 to 9.495 and copper is -2.050 to 158.30.
The dollar index is -0.154 to 86.570.
On the Radar
09:00 RPX Composite 28dy Index
09:00 RPX Composite 28dy Index YoY
02:00 ABC Consumer Confidence
Click here for the full trading radar.
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