Market Mystery: The Confouding Case Of Goldman Sachs

The Fast Money traders have spotted a market mystery. Let’s call this one the Confounding Case of Goldman Sachs!

Like all good detectives, the traders are always on the look out for something that doesn’t quite add up.

And lately the action in Goldman Sachs doesn’t add up -- at all.

Since reporting earnings mid-October, shares of Goldman are down about 15%.

That's right down 15%.

Not only is the stock underperforming within its sector -- the financials -- it’s also underperforming the broader market, as well.

What's Wrong With Goldman
Since GS Reported Earnings Oct 14t
Goldman Sachs down 15%
Financial SPDR down 10%
S&P 500 up 1%

That might not strike you as unusual for most companies – but we’re not talking about most companies. We're talking about Goldman.

It's the standard. It's the gold standard.

Widely considered a market bellwether, the conventional wisdom has been Goldman led the market higher and it would lead the market lower in a correction.

So why the disconnect?

For insights, who better to turn to than former Goldman guy, Fast Money trader Guy Adami.

He says, "Goldman is a stock that overshoots on the upside and it overshoots on the downside. It wouldn’t surprise me to see it at $150."

When asked if it's a sign of broad weakness to come, Adami answered, "Whether it’s a canary in a coal mine I can’t say but JPMorgan and Morgan Stanley are trading the same way. All 3 stocks may be telling you something!"

Karen Finerman sees the situation a little differently.

"I like Goldman," she says. "I'm bullish. I think their business is very strong. The sell-off has everything to do with a belief that they can't generate the kinds of results they generated in the last quarter. But they don't need to. I’m a buyer at $160."

______________________________________________________
Got something to to say? Send us an e-mail at [e-mail] and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to [e-mail].

Trader disclosure: On Dec. 18th, 2009, 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 (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Pete Najarian Owns (M) Calls; Pete Najarian Owns (MS), Is Short (MS) Calls; Pete Najarian Owns (UUP) Call Spread; Pete Najarian Owns (MRVL); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (UNG); Finerman Owns (AAPL); Finerman's Firm Owns (BCR), (M), (MSFT), (NOK), (TGT), (WMT); Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Call Spread; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (WFC) Preferred; nerman's Firm And Finerman Own (FLS)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)

For Jim Iuorio
Iuorio Owns (FXA) Calls
Iuorio Owns (SH), Owns (SDS) Calls, Is Short S&P Futures
Iuorio Owns (GIS)
Iuorio Owns (UN)
Iuorio Owns (EWC)
Iuorio Owns (FXA) Calls
Iuorio Owns (FXE) Calls

For Brian Stutland
Stutland Owns (GLD), Is Short (GLD) Dec. Call Spread, Owns (GLD) Jan. Put Spreads, Is Short (GLD) Jan. Calls

For Liz Dunn
Thomas Weisel Partners Or Affiliate Has Managed Or Co-Managed A Public Offering In Past 12 Months For (CACH), (ULTA), (LULU)
Thomas Weisel Partners Or Affiliate Has Received Investment Banking Compensation In Past 12 Months From (CACH), (ULTA), (LULU)
Thomas Weisel Partners Or Affiliate Expects To Receive/Seek Investment Banking Compensation In Next Three Months From (ANF), (ANN), (CACH), (CWTR), (ULTA), (LULU)
Thomas Weisel Partners Is A Market Maker In (CACH), (CWTR), (PSUN), (ULTA), (URBN), (LULU)
Thomas Weisel Partners Or Affiliate Has Provided In Past 12 Months Or Is Providing Investment Banking Services To (CACH), (ULTA), (LULU)


CNBC.com with wires