Goldman Avoids Sinking With Market, Says Dr. Joe Duarte
Duarte added: Is Goldman regaining its place as a stock that can hold up during tough times because it's a well run, well positioned company? The answer is maybe, which is more than you can say about Citigroup, General Electric, and now even Wells Fargo, a former bastion of strength in the current banking debacle.
Goldman, like the rest of the big financials, is now a bank. But it's a big bank, as it owns all kinds of things beyond buildings and derivatives, such as lots of oil storage facilities along the Hudson River. Goldman still has plenty of big time financial talent, and is one of the few companies that could actually pay back its TARP money fairly quickly.
That means that it's time to watch what the stock is doing more closely than ever because if the market continues to fall and Goldman holds up, it could be a sign that the very smart money is starting to bet on some sort of recovery, and that in a few weeks, or sooner, after all the fireworks are over, we could actually see a meaningful rally in the stock market.
Sure, that's a whole lot of ifs and buts. Yet, just a few weeks ago, Goldman was rising and falling with the market. Now, it's making higher highs and higher lows, otherwise known as a rising pattern, a rarity these days. If it holds up here, it may be the one cry in the wilderness that the bulls have been looking for.
Duarte's conclusion: In our view, this is encouraging, and although it's enough to continue to compile a shopping list, it's not enough to go out and buy stocks aggressively.
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Duarte partners with the Investors Resource Center at Investrend Information (http://www.investrendinformation.com).
Duarte's IntelligentForecasts.com (http://www.intelligentforecasts.com) provides free news coverage and analysis, and his daily articles and news summaries offer recommendations and analysis for ETFs, and individual stocks in the technology, health and biotechnology, and energy sectors. Duarte has combined expertise in health care, energy, and the effects of politics and global intelligence on the financial markets offer a unique blend of insight and information to thousands of active investors and political and intelligence aficionados around the world on a daily basis.
He is the author of: Futures And Options For Dummies, Successful Energy Sector Investing, Successful Biotech Investing and co-author of After-Hours Trading Made Easy. In early 2001, in Successful Energy Sector Investing, he correctly predicted that Venezuela's political problems could lead to an energy crisis in the United States. He has also appeared as a weekly guest on Market Mavens Radio and has logged appearances on KNX radio in Los Angeles, Financial Sense.com radio, and Wall Street Radio.
One of CNBC's original Market Mavens, Dr. Duarte has been writing about the financial markets since 1990. His articles and commentary have been featured on CBS Marketwatch, Barron's, Smart Money, Medical Economics, and in Technical Analysis of Stocks and Commodities magazines. In 2003, Doctor Duarte received second place, in the professional section, of the Medical Economics Investment Challenge with a 12-month return of 42%.
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