Goldman Sucks??

By way of Barry Ritholtz Big Picture "The most cogent analysis I have seen about the sudden drop in Energy prices comes via Tim Iacono's Friends in High Places? Iacono's argument is backed by the details of how and when the widely followed Goldman Sachs Commodities Index (GSCI)dropped its gasoline exposure in half."

and
Tim Iacono's The Mess That Greenspan Made..."Goldman made a little change in their commodities index, and that caused $6 billion in unleaded gasoline futures to be dumped onto the NYMEX." and

"It just so happens that the newly appointed Treasury Secretary used to run the investment bank that controls the world's most important commodity index, which seven weeks ago cut the weighting of unleaded gasoline by nearly 75 percent, causing all commodity investments based on this index to sell their unleaded gasoline futures."

While your at it, you might as well give Goldman Sachs an assist on the latest stock market pullback.... as noted in our
October 27th Market Observations...

One day after the OCT 26 SP500 high of 1389, on OCT 27th, between 1:00 and 2:00 ET, (look at an hourly, 1 minute then 10 day intraday chart to see the drop from 1:15EST on)....

"It was reported that Goldman Sachs cut its growth forecast for motherboard shipments. After the broker reportedly said motherboard demand is "falling off a cliff," tech stocks did just that, and the rest of the market followed and has not stopped since."

Coincidence? Confluence? Influence? or just the nudge needed to start a potential avalanche? You be the judge...

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