I wanted to give GS enough room to move today and failed. We were in @ 210.34 and stooped out at 207.80. Times 25 shares that's a loss of 63.50. As with the SPY the 8 or 10 day EMA provides the best indicator of future direction(not considering volume). The stochastic is rising from the 20% mark, but it is already very close to the 8 day EMA. With the 100 and 200 dma providing support between 200 and 210 and the 8 day squeezing down a break of the downtrend could be explosive. You can also see a W formation taking place with the right hand side of the W forming. All this in the daily chart.
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=gs&sid=0&o_symb=gs&x=41&y=13
The 15 min. chart shows a little hump at 215 which GS should be easily able to overcome if it is to rally and lead the rest of the market to higher ground.
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=gs&sid=0&o_symb=gs&freq=7&time=3
When trading it is very helpful to have an early warning system for the overall market. That early warning system is Goldman Sachs. If the market is going to rally then The Golden Godfather will lead the way. With it's CEO and US Treasury Secretary Hank Paulson heading the Plunger Protection Gang GS can buy as many shares of it's own stock as it wants with inflationary dollars electronically deposited by the FED into offshore accounts and transferred to discrete accounts known only to GS partners. If you want to know which way the market will go it will go with Goldman Sachs. To have a sustained market rally it is necessary for GS to lead the way.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment