Bespoke Investment: Financials Trading Strong
An interesting chart from BeSpoke Investment Group shows more than 80% of the companies in the S&P Financials trading above their 50 day moving average.
That’s a higher level than we’ve seen since before the emergence of problems with subprime mortgage back in February and much higher than what we’ve seen since the credit crisis of July and August.
They also note, as I did a couple weeks ago, that Goldman Sachs (GS) is trading phenomenally strong since the market lows on Thursday August 16th.
To me this screams “overbought”!