Posted by Gareth Soloway Friday, June 24, 2016, 03:08PM ET
Read 263 times
Goldman Sachs Group Inc (NYSE:GS) is collapsing today after the United Kingdom voted to exit the European Union (Brexit). The reason the bank stocks are taking a beating is because the added uncertainty means the Federal Reserve will likely not raise interest rates in 2016. 10 yr yields briefly dipped below the key 1.5% level. As yields fall, bank stocks (now restricted by Dodd-Frank) do not have as many options on making money. Essentially, they can loan money. The lower interest rates, the harder it is for them to profit. While Goldman Sachs is collapsing over 6% today, it is nearing key support. The level to buy is $139.50. A bounce in $GS likely means yields (rates) will bounce next week, coinciding perfectly. Goldman Sachs is currently trading at $143.08, -9.60 (-6.30%). Note the chart below...
Netflix, Inc. (NASDAQ:NFLX) is attempting to hold key support on the daily chart. The importance of the trendline seen below in the chart is it will determine next weeks price action on the stock. If NFLX closes below the line, downside pressure will likely take the stock to double bottom near $80.00. If it closes above the trend line, a bounce is likely to $94.00. Considering the stock is currently trading at $88.67 -2.99 (-3.26%), this is a major pivot with either big downside or upside next week. The trend line is approximately at $88.50. Watch for a close above or below.