Hedgeye CEO Keith McCullough appeared on CNBC’s Fast Money this evening to discuss QE3, Goldman Sachs and yesterday’s moves in the oil market.
With Goldman Sachs (GS) CFO David Viniar leaving, some question if the stock is shortable. Going into earnings season, you may be able to short Goldman. With Bank of America, you can trade the range of the stock into earnings based on past performance during earnings. But as far as GS goes, it’s a wait-and-see game.
Investors seem to be going long banks and financials due to the current play of the housing market. The housing market may be improving, but it’s not a lay up and money managers remain cautious about this kind of trade. If you missed the uptick in prices on homebuilder stocks and still want to get in, you’re putting on a lot of risk.
As far as oil goes, there’s huge speculation in the market. We showed you this in a chart yesterday when we called oil “peaky” only to see it come falling down an hour later.