Two Ways: Meredith Whitney Gets Bullish on Goldman
Strengthen your portfolio in good times and bad.
Top story this morning -- Meredith Whitney has upgraded Goldman Sachs (GS), her first bullish move since she left Oppenheimer & Co earlier this year and started her own firm, Meredith Whitney Advisory Group. According to Bloomberg, Whitney raised her rating on the company from "neutral" to "buy" and put a $186 price tag on the stock as the bank is expected to post massive profits before the bell on Tuesday Morning. Shares shot up 3.5% in premarket trading.
Toddo mentioned Goldman last week in Freaky Friday Potpourri: The Calm Before the Storm.
From the Bull Pen: Traders will want to avoid Goldman for now due to earnings risk. After all, expectations are high and we could easily look back and see that much of the move has already been made. Instead, consider the financial ETF (XLF) that pulled back to its breakout level in May ($10.80). A sell stop can be set below that level.
From the Bear Cave: As Toddo said, he's looking to make sales if Goldman gets jacked higher as earnings are rearview and volatility is likely to contract. Watch the behavior after earnings, and near $150 could be an opportunity for a downside swipe.
Quick Check Around the World
Asian trading closed with the Hang Seng -2.56%, India -0.77%, Shanghai -1.07%, Nikkei -2.55%, and Taiwan -3.53%.
Glancing towards Europe, we see the FTSE 0.15%, CAC 0.09%, DAX 0.13%
As of 8:10 AM EST, S&P Futures are trading +2.30 to 876.60 and Nasdaq futures are +4.2 to 1420.25.
A Look at Commodities
Over in commodities, crude oil is trading +0.04 to 59.93 while gold is +1.00 at 913.50 this morning. Silver is -0.150 to 12.49 and copper +0.40 to 220.45.
The dollar index is -0.1050 to 80.3250.
On the Radar
02:00 Treasury Budget
Click here for the full trading radar.
Welcome back and good luck today!
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