MS, Morgan Stanley post script

ms may 21 2012

Further to our recent blog on MS, there is a 3/4 year support line that may hold the stock. Technical analysts of all stripes use rulers to figure out where stocks might, or might not, move. A simple line is often all it needs. The logic is equally simple, you buy above the line in the hope that it goes higher, you sell below the line on a break. In this case the latter option is less attractive given the already depressed value. You do have to give these guys credit for pricing the FB initial public offering, just about right, something we had not seen for ages which , no doubt, caused a surprise and disappointment.

Again it looks like this stock may well be a buy here, if only for a trade of $6/7. See previous blog. All we need is QE3 and the Atlanta Fed guy is already paving the way.