Oh this is so tough! I came so close to pulling the trigger on Goldman when it broke $140 yesterday. The problem with buying Goldman Sachs hear is that it's up almost $100 from its $47 low in December. You should be taking profits here, but a break above 140 was a clear buy signal as well. So what do you do? Will Goldman hold above 140? There is no way to tell, but with the stochastics flattening out and turning over at 80 and volume dropped off a cliff it makes me think, not for long. Checkout the daily chart above, where you can see that the volume is flat, below it's 50 day moving average. I intended to use Goldman above $140 as a hedge against my underwater positions on SKF and FAZ, but I would be just as incline to short it below $130.
More evidence for the bear case is the volatility index or VIX. The VIX closed at 28.80, which is now way low, so as they say VIX is low, go. Go as in get the hell out of town. Another vacation maxim goes like "Sell in May and go away", what month are we in?
Now look at the intraday chart in the 15 minute time frame. the way it flattened out after yesterday's breakout. Makes me glad that I didn't jump, but I would feel better if it had closed back under $140.
Yesterday when it ran up in the last half hour. It just melt like the specialist with playing games. And today that held just above that $140 mark makes it smell. Even more.
Now look at the intraday chart in the 15 minute time frame. the way it flattened out after yesterday's breakout. Makes me glad that I didn't jump, but I would feel better if it had closed back under $140.
Yesterday when it ran up in the last half hour. It just melt like the specialist with playing games. And today that held just above that $140 mark makes it smell. Even more.
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