I have to admit today's +11.42% increase on MS is pure blissful insanity based on the fact that they reported a loss of -$0.38 per share rather than a profit, but earnings still beat consensus by about $0.27, translating to major stop-running action that broke past $24 - almost touching $24.50, but failing.
Bids were still heavy on the close and $24 is markedly an inflection point on the 1-year MS chart. This level was horizontal support all throughout Q4 last year from September through to the Santa Clause Rally, breaking way above for a climax at around $31.04 in March 2011. After prices began declining downwards again, a break below $24 caused market mayhem, leading to $20.18 just several days ago. I caught MS on its move down at $21.18 and suffered a $1 per share decline before having the quote unquote luck to experience this amazing run back up well past $24.
MS closed at $24.20 today. We're at a critical point. Is that a sharp W double bottom in the making? The UK Telegraph went so far as to report some guy from Rochdale Securities as saying: "Morgan Stanley is the new Goldman Sachs." I certainly agree, but we're definitely not at that point where investors from Morgan Stanley could well be forgiven for thinking that they've picked up the earnings results for Goldman Sachs just yet. However, this could perhaps bring competitors to notice MS as a potential acquisition target just a bit more.
In the meantime, I definitely enjoyed this very, very much:
+7.90% SBA
+0.74% Roth IRA
+1.21% DJIA
+0.72% Nasdaq
+1.25% S&P
Now it looks like the Roth IRA is the portfolio needing a little more ooommpph, but I'm going to stick with my plan to build a countercyclical capital buffer type third portfolio to prepare for any potential downturn comprising high dividend low beta low debt types of stocks. It'll be like my very own high yield savings account...
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