Goldman Sachs (GS) is significantly weaker than the market right now. Just a few examples: On October 29th after having rallied strongly for two days it gave back almost all of its gains in one day; as the S&P has consolidated and shown strength the past few days GS has sold off sharply on negative chatter; it dropped four points yesterday after an analyst lowered its price target intraday: in the premarket today it is up less than half as much as the S&P on a percentage basis.Normally my focus would be on finding good long opportunities under current market conditions: bottom in place, consolidation, and now the market is moving higher. But GS is too tempting on the short side. During the day I actively trade one stock at a time but will hold secondary positions in stocks that are trending in a particular direction. GS will not be my primary stock until it breaks 87.30, the low from the prior two trading days. But I will enter a short position if it fails to trade above the 92 level or breaks the 90 support today. I will open a very small position initially. If GS moves down quickly through 87.30 then I will add to my core position.Initial downside target of 85. Then 82. Next stop after that 75….
2 Comments on “Make This Trade”
Thanks for sharing your opinion! It is of great value to your readers!
Thanks for sharing your opinion! It is of great value to your readers!