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Weekly Chartology: In Which Goldman Gets Even Gloomier
One can just smell the revulsion emanating from the pages of David Kostin's writings these days. While his predecessor, Joseph Cohen, can serve the crazy juice on CNBC on a daily basis, Goldman's strategist is forced to follow the grand master plan and telegraph to clients just how ugly the future seems. And with prop allegedly no longer a main revenue driver, and thus holder of securities, Goldman better hope volume makes up for the loss in directional bias - what better way to score volume than to incite some fear and loathing. As Kostin said: "We shifted to a more defensive sector allocation this week in anticipation of slowing economic growth indicators and downward revisions to consensus earnings and real GDP forecasts. These changes put us at odds with bottom-up consensus EPS and large cap core mutual funds, particularly in our Consumer Staples Overweight vs. Discretionary Underweight where mutual funds hold the opposite position." Goldman's 2011 earnings forecasts are most below consensus in growth-sensitive sectors such as Consumer Discretionary which is 23% below bottom-up consensus while both Energy and Materials stand 10% to 15% lower. Whether this means to buy every Consumer Discretionary share or sell, depends on just how quickly the Goldman prop roll off is proceeding. All this and all the other must see weekly charts included.
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These shifts could very well be reason for heat-mapping algos to ramp the market much higher over the next couple of weeks.
Joseph juice bitchez!
I am forced to wonder: are the big boys closing their prop desks now as a way to say "fuck you" to the Dodd bill, and thus elminating their own role as "Supplemental Liquidity Providers", market-rampers, etc etc? In other words, are they taking their ball(s) and going home?
Whether or not that is the case, good riddance.
The Prop desks are just moving into deeper shadows.
They can do far more damage there.
I find it amusing that since Goldman started throwing up the caution flag, the market has gone straight up.
The squid is not to be trusted.
That makes sense because this market is counterintuitive. The bad news starts circulating from Goldman right as the market is being ramped in order for insiders to dump their shares. Then the market crashes. It gets really bad before anyone starts to lower their forecast. At that point, they are already starting to buy.. and raise their forecast. Rinse and repeat.
Just wondering how much does Goldman pay ZH to have this crap published here?
The GR8 Squid prop desk have racked-up 3% lately...that's it....not exactly stellar performance. That era is gone. Turn the anger towards the HFTs
I found lots of interesting information here. I love zerohedge.
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