We told you about the fundamentals now find out how the technicals suggest trading Goldman Sachs and Merrill Lynch!
As we told you last week, the Street expects to hear mostly positive news on Tuesday from Goldman Sachs because they appear to have avoided big writedowns.
The expectations are also optimistic for Morgan Stanley on Wednesday with analysts reasoning that its diversified businesses should help minimize the impact of the credit crisis.
Although the fundamentals appear tempting the technicals are stomach turning, at least to Oppenheimer Chief Market Strategist Carter Worth. The seduction is that these stocks are oversold but resist the temptation to buy, he says. Trends in both the Goldman and Morgan charts suggest that these stocks could soon break lower.
”If you think Morgan and Goldman look cheap, they’re not. They’re a value trap! Just stay away,” Worth counsels.