Goldman Sachs Share Price Signals Danger

So far this year general equities markets have been going up without the financial sector participating in the rally. "So far."

Friday the financials began to fall faster. Click this text for a link to the details.

Below are two charts of Goldman Sachs, the first for the year-to-date and the 2nd is a 4-year chart (since the bull market top in 2007). The other financials have similar charts.





Typically this sector leads, or at the very least provides a great deal of support, for general equities markets and investment sentiment in general. These charts do not illustrate supportive price action or positive sentiment.

Possibly it doesn't matter and it's different this time. Possibly Goldman's chart will make a "double-bottom" pattern around this price level, relating to its lows of last summer. Possibly, and we think probably, not.

Given the silver collapse in progress and global markets being very overdue for some correction if not a bear market resumption, those going unhedged and unconcerned in light of these very bearish signals do so at great risk we believe.

For a little over 2 years now any monkey could point to almost any stock ticker or commodity and pick something that would multiply the money invested. Some would argue that's a good thing. What is inarguable is that all good things come to an end.

We like AAPL short, last at $335.22 and bidding to cover on any close above $356

Those more aggressive may consider inverse levered ETF products such as FAZ, QID and BZQ. Of course the great volatility and thus inherent risk in these must be factored, and prudent stops & exit strategies must be determined and respected.




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