Tuesday, August 30, 2011

Trade Update: GS

Goldman Sachs GS jumped up at the open yesterday. I kept waiting for a pullback, but we never got one. So, I had to go in and buy at $115.06 putting our cost basis at $112.34.

I almost never trade during the first fifteen minutes of the market open because it's more often than not only a head fake. Just look at the action on Thursday of last week when the shares jumped up eight dollars at the open and fell back $10 before the close. Yesterday however the market did not cooperate and Goldman Sachs went all the way up to $116 and stayed there.

Now look at the daily chart. Notice the small uptrend line that's beginning from the low of $103.16. That will become a force to be reckoned with if and when it breaks $120. I think our chances of getting their are pretty good. The stochastic is in mid range and red line is separating from the blue line.

About the only thing we can do now is move our stop up to $112.34 to lock in a breakeven trade.

Buy 50 shares of GS at $115.06
Stop @ at $112.34

Buy 50 shares of GS at $109.62
Stop @ at $112.34

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