On June 29 I wrote a blog post titled “Financial Stocks – Notable Price Action.”
I continue to believe that the “price action” of various financial stocks is disconcerting. I view the poor performance of these financial and brokerage stocks to be one indicator among (very) many that serves as a “red flag” as to the financial markets and economy as a whole.
Among these financial stocks, the continual decline and price movements of Goldman Sachs (GS) is particularly noteworthy and worrisome.
Here is an updated chart from that June 29 post. It shows the XLF (the financial ETF) on a daily basis since 2007. As well, the S&P500 is plotted above it, with GS and JPM shown below it. The blue line on each indicates the 200dma:
(click on chart image to enlarge)(chart courtesy of StockCharts.com)
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1204.49 as this post is written