Tuesday, August 07, 2007
The Fast Money Guys Versus The Market Speculator
The Fast Money guys are hot on the financial sector, with Guy Adami specifically pointing to Morgan Stanley as a valuation play. I, on the other hand, am bearish on the sector and currently short Morgan Stanley.
There is no way a true technician could enter MS from the long side right now. Take a look at the chart. Price, OBV, RSI and stochastics are all trending down. To make matters worse, the current bounce is still under the 200 day moving average, with the shorter term 50 day moving average pointed downward and looking ready to cross below the 200 day. These are all bearish extremely bearish signals that make the current bounce the perfect shorting opportunity.