Analyst Dennis Gartman addresses the recent problems of Goldman Sachs (GS) and Apple’s (AAPL) declining stock prices:
The Gartman Letter: We note that two of the real leaders of the US markets to the upside in recent months… Apple and Goldman Sachs… have turned quietly for the worse in recent days. Actually, in Goldman’s case, this turn-for-the- worse has developed over recent weeks, not days, with the top having been presciently made by the “call” by Ms. Meredith Whitney back in early October that the best earnings growth for Goldman was likely behind it and that more difficult times were ahead. In retrospect this was indeed a most prescient “call’ on Mr. Whitney’s part, continuing a rather long run of prescience on her part. The point here, however, is, that the trend line that defined Goldman’s bull run has been rather clearly broken as evidenced by the chart we’ve included in the lead position at the bottom of p.1 this morning.
Since the early October high, GS has failed to make any newer highs, and indeed it has made new and lower lows instead. And now we note that the other leader, Apple, is acting as badly, if not worse, than has Goldman, beginning with the strange failure late in the session Monday which caught our eye, and continuing with the weakness Tuesday and on into yesterday.
Where Goldman has broken its uptrend line, Apple has not yet done so, but that line is in jeopardy and it shall not take much to turn Apple from a powerful bull run into a potential bearish top. This we find disconcerting, for these were the leaders to the upside, and when the “Generals” fall we wonder what shall happen to the lesser cadres.