Here are daily bar charts of two of the companies whose principal activites are fueling the private equity buyout boom which has fueled the current bull market, Goldman Sachs and the Blackstone Group.
In the last Tale of the Tape I said that I thought GS was about to break above resistance at 233 and move to its next upside target. Instead the reaction from the 233 level has continued and I think that GS will drop to 200 or so before its bull market resumes. I still think that the 250 level will be seen later this year.
The Blackstone Group (BX) went public at 31, rallied the next day to its high at 38 and has been coming down ever since. I think it will find support near 23.75 which is 5/8 of the 38 high. After some sideways action I Expect to see BX rally to 50.
I do not think the buyout boom is even close to being over. You can see the front cover of the Economist magazine a couple of weeks ago at the top of this post. It shows "private equity man" about to tumble into the abyss. I would find this cover more bullish if it came after a substantial drop in the stocks of the buyout barrons. Nonetheless, I think it is unlikely that the Economist has called the top of the private equity boom, so I think GS and BX are still in bull markets.