Tuesday, August 9, 2011

Trade Update: GS

We went short Goldman Sachs at $120.90 and again at $118.99, in what was admittedly a late trade. The shares went all the way down to the $112 area before recovering and stopping us out at $122.45 for a $125.25 loss.

I believe that this is a short covering rally, so we did not go long on GS yet. Right now I'd like to get another pullback and catch Goldman Sachs when it turns back up again. In fact you can see the double bottom at $133.11 and $111.60 in the 15 minute chart. What we are looking for now is the same pattern in the daily chart. So, until we get some direction we are out of the market.

Sell 1/4 GS at $118.99
Buy 1/4 GS at $122.45

Sell 1/4 GS at $120.90
Buy at $122.45

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