Friday, August 12, 2011

Trade Update: GS

We got the market bounce as anticipated and Goldman Sachs responded well. In the daily chart you can see the fall from the failed double bottom at $125. Look at all of the activity underneath $120 this month. I don't think that Goldman Sachs is a buy until it breaks at least $120. That's why yesterday I said it was a risky trade when we bought 50 shares at $119.49 with a two dollar stop.

You can get a better look at the resistance at $120 in the intraday chart in the fifteen minute time period. If Goldman Sachs breaks $120 with any force we will complete the position. Otherwise we will be stopped out with a $100 loss.

Buy 1/2 GS at $119.49
Sell 1/2 GS at $117.49

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