Breadth for Financials Looking Better; Goldman Sachs (GS) Approaching New Highs

Even though the S&P 500 Financials sector remains well below its 52-week high, the breadth of the sector is looking good.  Currently, 82% of the stocks in the sector are above their 50-day moving average.  This is above levels reached during the Spring and about inline with levels of the fourth quarter of 2006 -- a time when the sector was regularly making new highs.

lt's also amazing to see that Goldman Sachs (GS) is just $5 away from record highs again.  Since its low on August 15th, the stock is up 37.87%.  Many have come to believe that Goldman has replaced General Electric (GE) and Citigroup (C) as the best stock to measure the health of the overall US equity market.  Based on the stock's recent performance, things are looking pretty good.

 

Comments

[Greg Feirman]

Hey Guys,

Super post on "The Best Were Worst Today" on yesterday's market. You really put your finger on what was an odd day.

Goldman is actually up more than $60, since it's close on August 15th - not $37.50. Almost a 40% move!

[Justin]

Thanks Greg,

We meant to say 37.87%.

[jmf]

Moin from Germany,

and on solid fundamentals....... :-)

via Marketwatch Goldman:Aug level 3 asset value $72.05B, 7% of total

...the size of its level 3 assets at the end of third quarter increased to $72.05 billion from $54 billion at the end of the second quarter.

Goldman Sachs said level 2 assets at the end of third quarter amounted to $494.6 billion. There may be some market activity for level 2 assets but the valuations often depend on internal models

Goldman Sachs disclosed that the net unrealized gain on level 3 derivative contracts amounted to $2.62 billion in the third quarter, saying the gains resulted from changes in level 2 reclassification as opposed to level 3 changes

In connection with its lending activities, the firm had outstanding commitments to extend credit of $135.53 billion as of August, compared with $100.48 billion at Nov. 30 fiscal yearend