Even Golden Slacks Get Worn Out

Goldman Sachs (sometimes known as "Golden Slacks," as one its kinder nicknames compared to others) the iconic banking house, is the worst performer in the Dow Jones Industrial Average today as I write this. After tagging the big, round, 50,000 number in February, the Dow continues to unwind, suddenly within a stone's throw of testing its 200-day moving average, a long-term reference point. 

But with Goldman unraveling below its own 200-day moving average today we have even more concrete evidence of financials taking it on the chin beyond the obvious private credit names like APO BX KKR OWL. 

JP Morgan, also in the Dow, has been below its 200-day for a while now. And with Goldman joining it today the case for private credit risk contagion is not just a mere bear dream. Of course, much of this is being overlooked due to Iran, oil, etc.. 

However, the long-term Goldman chart, below on the quarterly timeframe, illustrates just how steep the rose-colored glasses have taken these financials higher in recent years. Even if there is no full-blown contagion there sure seems like tons of room to drop even for an overdue deep correction, particularly with this quarterly candle shaping up as a hard reversal down.  

Elsewhere, as we noted yesterday the Iran supply shock risk is not just with oil. We also have ags, chemicals, natural gas, and other plays with Members. Just today, for example, consider the sizable gap up in long-time laggard Mosaic.