As I write, the stock of Morgan Stanley is crashing and the overall technical picture reminds me of LEH - although I think they (FED) learned their lesson and will not let them fail. In any case from a pure technical point, it has to drop below 10 towards 5-7. That's hard to say but they are in trouble as most financials look vulnerable. Do not try to catch this knife - Bernanke just spoke about a possible rate cut but we need one urgently, everyday which passes without requires more radical steps.
Tuesday, October 7, 2008
Morgan Stanley technical alert
As I write, the stock of Morgan Stanley is crashing and the overall technical picture reminds me of LEH - although I think they (FED) learned their lesson and will not let them fail. In any case from a pure technical point, it has to drop below 10 towards 5-7. That's hard to say but they are in trouble as most financials look vulnerable. Do not try to catch this knife - Bernanke just spoke about a possible rate cut but we need one urgently, everyday which passes without requires more radical steps.
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