Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
I don’t know if this is the same strategist but within a week of the high in April Goldman said this was a “generational buying opportunity”. Then within a few days of the low near the turn of this month, they said to get out of the market. So for those who believe in conspiracy theories aka “How Wall Street Works” – they were getting clients out as they issued the generational buying opportunity call, and getting clients in as they told everyone else to get out.
Today Goldman made an intraday call to go short and the market which was slightly down, put on another 0.6%-0.7% of loss in short order. It’s all well and good as the market needed an excuse to come back and fill. The NASDAQ has come back to that ever important 2900 level, and the S&P is still above 1340. The 10 day moving average for the S&P is 1335 and rising quickly…. a pullback to that area would be reasonable.
Here is the call via BusinessInsider:
We are recommending a short position in the S&P 500 index with a target of 1285 (roughly 5% below current levels) and a stop on a close above 1390. This morning, the Philly Fed print of -16.6, down sequentially and worse than expected, provides further evidence that weakness has extended into June.
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