Monday, November 23, 2009
Is this rally for real? No. Is it going to continue? Yeah! I don't know that, but Goldman Sachs does. Take a look at the daily chart of the golden gangster. You can see it bounced off its 100 day moving average just as the stochastics are turning up, crossing over, from under 20.
Don't be discouraged by the dangerously anemic volume. It is a natural consequence of the rig rally. Think of it this way in a free market Goldman Sachs would no longer exists, but here it is at $172 per share. That means that the powers that be and the plunge protection team insists on a rally into the holidays.
As far as the rest of the market goes there isn't one, it's all Goldman Sachs. Up or down the rest of the market will follow the golden gangster, let's do the same.
By 25 shares of Goldman Sachs at $172.79.
Stop loss at $168.33.