Investors Bet Wall Street is Still Easy Street, Buying Goldman, Brokers Before Earnings
After reaching record highs and then sliding on the global equity slump and lending blowup fears, investors have started to bid aggressively for Wall Street stocks again. With quarterly earnings from Goldman Sachs (GS) hitting the street tomorrow and Lehman Brothers (LEH) following on Wednesday, how much longer can you continue to bank on the investment banks?
Dylan Ratigan reminds that on Friday, Guy Adami said to buy GS.
Today Guy says he’s still a buyer. He thinks traders don’t expect them to have blow-out numbers, but Guy thinks they will. He says Goldman should be trading at $208 or $209, up from its close of $202.60 today.
Jeff Macke says everybody knows that GS is going to beat expectations. The problem is their sub-prime exposure, which is a great unknown. Jeff says sell GS and buy them back later.
Eric Bolling says Guy is on the money, but Eric wouldn’t buy GS ahead of earnings. He recommends looking for a 2 or 3% sell-off after the earnings are released and buying the dip.
Eric says Bear Stearns (BSC), LEH and GS have almost identical charts. They all look like they’re in the same shape.
Tim Strazzini says they look like dead money to him and that the trade was 3 week ago. He says if you missed it you missed. Tim wouldn’t buy these names right now although he thinks the stocks will move higher.
Questions? Comments? firstname.lastname@example.org
On MAR 12, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Bolling Owns (BP), (DIS), Gold, Silver, Soybeans I s Short Corn; Macke Owns (JWN) Strazzini Owns (EWG), (STM), (SNDK), (VZ), (WMT), (HAL), (MER), (YHOO),(T)