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Portfolio Update: Has Facebook Broken Morgan Stanley?!

  • Written by Syndicated Publisher 2 Comments2 Comments Comments
    May 21, 2012

    As markets continued their prices decline lower through further support levels, it now appears inevitable that the S&P500 is likely to test the next major level of support below at 1275. With markets moving lower we have trimmed the beta 3.0+ portfolio by 2 more instruments as at Friday May 18, 2012 as follows;

    Additionally as the technical deterioration continues, there again was a significant number of stocks that moved to intermediate term bearish trend signals by Friday (as determined by our proprietary trend signal analytics model). Typically the duration of the trending movement following a signal is several months to a year or more.

    An important development on Friday was the first indications of technical weakness entering the financials with one of the key leading financial stocks turning bearish – Morgan Stanley (MS). Not a good sign for the broader financials – and it may well turn out that the facebook IPO may in fact be the straw that breaks Morgan Stanley’s back – rather than its savior.

    Certainly from a technical perspective if it (MS) breaks below $13.00 with the dreadful technical set-up that it has then it might just be headed for the type of trouble seen circa 2008 by Lehman and the like – so watch out for this stock – Morgan Stanley (MS)!

    Of the stocks listed below, those that are bold and accompanied by an astericks (*) have been added as new additions to the various beta portfolios. Please log-in to the open portfolio positions click here where you can see how each of the highlighted new bearish trend signals in these stocks have been leveraged in the various beta portfolios.

    *Please note that the information provided here is for information purposes only and should not be construed in anyway as advice of any sort. Please familiarize yourself our important disclaimers here before continuing.

    Images: Flickr (licence attribution)

     

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