Triangle Investors

BS Rally Today August 21, 2009

Posted by Andy Robinson in : News , trackback

We’ll have to see if next week we finally get the beginning of a correction but it’s obvious that Goldman Sachs has a lot of call options expiring today that they needed to make good. The stellar existing home sales reported are mainly bolstered by the low end price points (ie foreclosures and 1st time buyers looking to cash in on government largess). Foreclosures will continue to rise now that 13% of all mortgages are delinquent so we may get even more “great” economic news over the next few months…at least until the first time home buyers money runs out. This bear market rally has lasted much longer than I expected it to, but count it as a gift and use it to take more money off the table and hold cash. I wouldn’t short since this momentum is extremely strong unless you are buying Nov put options as a hedge for an existing portfolio position.