Goldman Sachs Conviction Sell List

Goldman Sachs added Salesforce.com (NYSE: CRM) ...

Goldman Sachs removed Riverbed Technology, Inc. (Nasdaq: RVBD) from ...

Headwinds Howling

After Thursday’s chart-based bounce higher, the market returned to its losing ways on Friday as it appears that there were simply too many headwinds for the rally to fly into. The session was largely devoid of good news and despite a solid attempt to rally after lunch; things simply fell apart into the close as the Dow gave back more than 400 points in the last 45 minutes.

This type of activity usually smacks of forced selling. And the weakness seen in the usual names supported the concept, although there was no word of any specific fund related problems on Friday.

However, this is not to say that the session did not have its share of other problems. First, we got some really crummy data from the retail sector. The report on retail sales showed that sales in October fell by -2.8%, which was the fourth straight monthly decline ...

Goldman Sachs added Altera Corp. (Nasdaq: ALTR) ...

Is The Worst Priced In Yet?

Now it gets interesting. This is not to say that the past few days have not been interesting. However, once the major indices broke through last Thursday’s short-term support level, it was pretty much clear sailing for the bears until they got to the old lows as the word “retest� has been all anybody who ever read “Technical Analysis for Dummies� can talk about lately.

But now that we’ve arrived at the lows for the year, with the S&P 500 down -12% for the month and -42% year-to-date, we have to ask ourselves one question: Has the worst been priced in at these levels?

On October 9th, the market made what most analysts believe to be an “emotional low� and then bounded off the bottom to finish with a classic “key reversal� day. And while history tells us that bear market lows often come ...