U.S. stocks wonât rally until Congress approves President Barack Obamaâs economic stimulus plan and the Treasury resolves how to use its remaining financial- rescue funds, according to Goldman Sachs Group Inc. The Standard & Poorâs 500 Index will probably âretest,â or fall toward or below, the 11-year low of 752.44 it sank to in November, strategist David Kostin wrote in a report today. Still, the benchmark index for U.S. stocks will end this year at 1,100, a 30 percent surge from yesterdayâs close, he said. The yearlong recession and dwindling credit forced consumers to scale back spending and companies to cut profit forecasts. To revive growth, the government set up the Troubled Asset Relief Program to help banks, and the House this week passed a more than $800 billion stimulus package. The Senate hasnât voted yet. âPassage of a stimulus plan and resolution regarding the remaining TARP capital are critical milestones that must be passed for the S&P 500 to trade higher,â wrote Kostin, Goldman Sachsâs U.S. investment strategist. The S&P 500 last year tumbled 38 percent, the most since the Great Depression, after the collapse of Lehman Brothers Holdings Inc. froze credit markets and more than $1 trillion in losses at financial firms eroded profits. Since sinking to 752.44 on Nov. 20, the benchmark has gained 11 percent to 835.55. http://www.bloomberg.com/apps/news?pid=20601087&sid=aVZz0qgPUpkQ&refer=home Last time we had a call from GS market rallied. I suppose this time, too.
I have to agree that new lows are coming, I think we break 750 on the s&p and head towards 700, if you have patience you will be able to pick up many stocks 20-30% cheaper from todays prices. Dow is sitting at 8020, it will not take much to push it down another 1000 points which is quite possible over the next 2 weeks.
if dow closes below 8555 just 2 hours and 10 minutes from now, it closes below the 200 month avg for the first time in decades if ppt has anything up their sleeve, thy gotta use it now
Obama & Goldman Sachs are in bed together. It's funny to see so many on ET cry about Obama being bad for Wall Street when he got absurd amounts contributed to his campaign from Wall Street.
8552.25 actually i think it's pretty unlikely but within the distance of a 'jam job' they have all the motivation in the world to do it technically, they're fucked if they dont it wont really change anything if they do, but it will buy them a month of course, maybe this is the month they bought last month trillions spent, and if they still cant hold it, it looks pretty bad
well, they've certainly passed up any chance to be subtle about it it's either giant sticks up, or nothing unreal, that this much stimuls cant hold above a (dow) 200 month close door now open to dow 5000 technically
I have to agree. Indeed the constant intervention by the PPT has technically created a descending triangle on the SPX. If 5000 were ever broken, it's bye-bye to the 20th C. bull TL.
as blatent as it would be, even ppt giant sticks up to close above dow 200 month avg would be better than letting it close well below real uphill psychology if close below i know from a trading perspective, it doesnt matter, but from a citizen perspective, it's disturbing
3 stabs below the 200 month with closes above for the previous 3 months, contained almost perfectly by the 5 month avg this month, and the december 'inside month' did no good this is really ugly technically a continued crash, after little more than a consolidation pause, really looks like the market corrected by time, not price