Trade Alert: GS

I know I said buy Goldman Sachs on a strong break of $150. The shares are trading now at about $155 which I do consider a strong break, but Goldman Sachs is rolling over. I know that it is still going up, but it's slowing down, the stochastics are at 80 and the 100 day moving average is flattening out with decreasing volume. Goldman Sachs is rolling over. See what I mean in the daily chart below.

On the intraday chart you can see how they gaped it that up today on the open and it has now shot up to the high of the day.

The stock has gone from $47 to $155 since November, Meredith Whitney is recommending that you buy Goldman Sachs as a Goldman Sachs insiders are getting out. If I had bought Goldman Sachs and $47 back in November I would be getting out now too. The $5 shot out of the box today makes staying now unbearable. They are trying to suck you in.

Goldman Sachs is rolling over, but technical analysis is not valid in a thoroughly rigged market. So here's the deal: if we stay now and Goldman Sachs goes to $1000 a share, painful as it is in reality we don't lose a penny. Preservation of capital is the number one trading rule. But if we getting in today say and the stock gaps down in the morning a big loss is unavoidable, and mostly by some puts as a hedge, this is getting expensive. But if we do catch the pullback we will catch it big and this may just be the place to catch it. Let's be patient and see.