Chartology: Broker Breakdown
By: 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.
| Price | Change | %Change | ||
|---|---|---|---|---|
| GS | --- |
| Price | Change | %Change | ||
|---|---|---|---|---|
| MS | --- |
For more of Carter Worth’s technical analysis please watch the video.
Read More:
For Guy Adami’s fundamental analysis of these stocks check out “Take Your Position: Financials”
For Sandler O'Neil brokerage analyst Jeff Harte's expectations please read"Word on the Street"
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Trader disclosure: On June 16, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (NUE), (AGU), (C), (GS), (INTC), (BTU), (MSFT); Macke Owns (ATVI), (MSFT), (INTC), (WMT), (HAS), (DIS); Najarian Owns (AAPL), (BHI), (CHK), (ENER), (HPQ), (TSO), (XLF); Najarian Owns (GME) Calls; Terranova Owns (GS), (LUV), (FXC); Terranova Is Long Dec 2008 Crude Oil; Terranova Is Short Dec 2009 Crude Oil; GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC
Terranova is chief alternatives strategist at Phoenix Investment Partners; Phoenix Investment Partners Ltd. Is Long Airtran Holdings, Alaska Air Group, American Airlines, Apache, BP, British Airways, Chesapeake Energy, Chevron, ConocoPhillips, Continental Airlines Delta Air Lines Deutsche Lufthansa, ENI SPA, ExxonMobil Gazprom, Hawaiian Holdings, Hess, Holly Corp. Husky Energy, JetBlue, Lukoil, Marathon Oil, Murphy Oil, Occidental Petroleum, PetroBras Intl. Fin. Petro-Canada, Petroleo Brasileiro S.A., Petroleos De Venezuela SA, Qantas Airways Republic Airways, Royal Dutch Shell, Skywest, Southwest Airlines, Suncor Energy, Sunoco, Tesoro Texaco Capital, Total SA, United Airlines, US Airways Group, Valero Energy
