MEREDITH WHITNEY: JOHN PAULSON IS WRONG ABOUT THE BANKS
20 November 2009 by Cullen Roche
4 Comments
Great thoughts here on the banking sector and the U.S. economy. The good stuff doesn’t start until a few minutes in. She is not bullish….
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Comments
She has been bearish for the last 12 months. The only exceptions is GS buy call during 2nd quarter which she now downgraded.
Anyone who listened to her in 2009 has missed a 60% rally.
Better to avoid a 60% decline then miss a 60% rally.
Eric,
Statistically you are dead on correct. Too many people are trying too hard to make up for their losses in 2008. If the government had not thrown away so much of our money to extend and pretend, this rally would have been over several months ago. You can trade this rally , but you can’t own it. There is nothing there to own once the casino shuts down.
Also just because Whitney has been bearish for a long time on banks does not mean that she is wrong. The facts that she reports are the same ones documented by TPC,Market Ticker, Calculated Risk and ZH.
The banking sector daily charts are bearish so be careful.
My long term USD indicator has been giving BULLISH warnings for some time and I’m still expecting a USD rally which may have a bearish effect on stocks.
Technical analysis can also assist us as to the direction of the economy.
My indicators can identify trend changes before they occur.
They warned me of an impending market crash back in early *2007*
The VIX index continues to give bullish warnings as well.
Is the bear market rally ending ?
I post my analysis at this forum:
http://www.zerohedge.com/forum/market-outlook-0