Goldman Sacked

By: Erik Swarts | Fri, May 20, 2011
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This chart caught my attention.

Great relative strength for the broader market in the face of deteriorating financial support. Historic lows on Goldman's daily relative strength index (RSI). Lower than even during the financial crisis in 2008. Looks primed for a bounce - but buyer beware. The last time it traded this weak on a relative strength basis was right before the bottom fell out of the market in the fall of 2008. A more equal comparison of market conditions (in that GS dislocated from trend) was last May when the SEC investigation broke. The market held up for a few days before it followed suit. What is troubling about today is how long Goldman, and for that part the financials - have been trending away from the broader market.

And isn't there something about some kind of rapture this weekend?

Of course Goldman would know about it before the rest of us...

SPX and GS


Along this line of thinking: Baromarket Pressure

I just joined Twitter. All my trades and occasional market musings are disclosed in real-time here.



Erik Swarts

Author: Erik Swarts

Erik Swarts
Market Anthropology

Although I am an active trader, I have always taken a broad perspective when approaching the markets. I respect the Big Picture and attempt to place each piece of information within its appropriate context and timeframe. I have found that without this approach, there is very little understanding of ones expectations in the market and an endless potential for risk.

I am not a stock picker - but trade the broader market itself in varying timeframes. I want to know which way the prevailing wind is blowing, where the doldrums can be expected and where the shoals will likely rise. I will not claim to know which vessel is the fastest or most comfortable for passage - but I can read the charts and know the risks.

I am not a salesperson for the market and its many wares. I observe it, contextualize its moving parts - both visible and discrete - and interpret.

I practice Market Anthropology - Welcome to my notes.

Erik Swarts is not a registered investment advisor. Under no circumstances should any content be used or interpreted as a recommendation for any investment, trade or approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This is strictly for educational and informational purposes only. All opinions expressed by Mr. Swarts are subject to change without notice, and the reader should always obtain current information and perform their own due diligence before making any investment or trading decision.

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