GS trade ideas
Watch the put action in the banks.Another "london whale" event could unfold , with Oil and Euro falling so much, so fast. Watch the out-of-the-money put action in the banks for any "tells".
GS - Open Interest EvaluationIf Price Closes within the range, The Pain could be closer to $100M, in Options Premium. If it breaks Lower limit, there will be a quick rally, because of option defenders.
Similar to the linked post.
This particular setup I look for is hard to find. So far I do not have a scan. Would be awesome if one exists.
GL folks
LONG GS at the balance extremeWe go long on the balance extreme completing and HS bottom pattern. These patterns tend to have a very high success ratio.
Given that we are entering November which is a beginning of a seasonally strong period until May and the Republican party gaining more influence which often spells more deregulation and other positive effects on banks there could be a potential for some uplift.
The stock is held by Warren Buffet but at much lower prices however his portfolio managers did add some at higher levels as well.
The pattern is one of the better performing chart patterns so I use quite heave size on this one. Earnings were positive and this is an earnings winner.
I expect it to start performing again some time next week.
It could have more potential than the target charted if we gain momentum but I would use that point as my first target.
Weekly bearish engulfing, trend line breakdown - $GS is a buy?I saw some analysts saying the $GS is cheap before earnings.
Last week we saw a weekly bearish engulfing candle (Outside bar).
This week we see trend line breakdown and a close below the 180$ resistance zone.
Even if $GS will bounce from a good report, can you really call it a "Buy"?
If Dow Jone were to make another high..One of the Dow 30 constituents, Goldman Sachs has to clear the resistance of around 188.45 and surge towards top of uptrend channel
$GS Achieved 5% Upside Projected targetIt was awesome trade if you were luck enough to take it from$173.98. If you want a real time alert try us www.2waytrading.com It looks to push a new higher high watch at $186.41 next overhead resistance.
Follow Up (A month Ago)$GS did as projected this is to republish previous post a month ago. Here is what we had to say "December last year, the price gained that month 10% which was one of the few best months of the year, and tried to continued into this year, it failed and reversed that upside swing momentum and printed a new lower low from Dec low. It gained almost 10% from Jan low before it gave up all of it. It was not a good sign at all and price violated with strong volume 3-EMA and printed a new lower low from Dec, and Jan lows. April low supported with light volume suggested the bottom was in process and best trade was to take long above the consolidated square..or short below the lower. End of May price broke out upside and built a strong upside swing which printed higher highs and higher lows. Now, August price bounced from 61.8% from July low to July High which gives us some conviction that if price holds August low there is higher probability that we will see a new higher high or reclaim of December high. Stay safe and follow us if you like it." If you want a real time alerts just try us www.2waytrading.com
The Inverted Head and Shoulders Failed but still can resumeThe inverted head and shoulders has not achieved its projected move or measured move towards 193 area but still is possible to achieve it. Get your gun ready and trigger your trade once the pull back completes its expected downward move. We put some important notes on the chart. If u need a real time alerts, try us www.2waytrading.com
Goldman Sachs Short - Overbought Momentum LossGoldman Sachs is a short to me here on the daily for a quick short. I'll disclose now that on the Weekly chart I am long based on the giant indented head and shoulders and the smaller head and shoulders that makes up the right shoulder. That is in my IRA however, as I do not purchase stock (writing covered calls) in my trading account simply because it ties up too much capital (usually).
The weekly outlook aside, I like what we see for a potential brief pullback here. Working from the top down, RSI is approaching it's previous two time resistance around 74, indicating to me that the stock is overbought. Both of these prior occurrences happened in the current trend.
Secondly, we have a shooting star after a two week up move, now followed by what looks like it will be a Harami. GS does not have a historical pattern of breaking out above the BB, even after a slight contraction in volatility. When it has, it's usually a quick retracement.
The one thing I do not like here is that OBV usually leads price and it has now crossed above it's 21WMA. Last time this happened it led a leg up. This time, however, over 50% of the move has already happened and it's just crossing positive, so perhaps it's not much to worry about.
IV%R is low in GS, at only 12% so that leaves the possibility of selling anything for a credit out of the books. That means I'm looking for a Long Put Spread basically. A diagonal wouldn't do because diagonals usually require some time passage, and this should be quick. Although I may keep an eye on the diagonal just to see how it would pan out. This low volatility market is no fun, and leaves my option strategies severely limited. Hopefully we will find some nice charts with higher volatility sometime tomorrow that we can enter some strangles and naked calls/puts with.
$GS Signals New Higher High From July's highDecember last year, the price gained that month 10% which was one of the few best months of the year, and tried to continued into this year, it failed and reversed that upside swing momentum and printed a new lower low from Dec low. It gained almost 10% from Jan low before it gave up all of it. It was not a good sign at all and price violated with strong volume 3-EMA and printed a new lower low from Dec, and Jan lows. April low supported with light volume suggested the bottom was in process and best trade was to take long above the consolidated square..or short below the lower. End of May price broke out upside and built a strong upside swing which printed higher highs and higher lows. Now, August price bounced from 61.8% from July low to July High which gives us some conviction that if price holds August low there is higher probability that we will see a new higher high or reclaim of December high. Stay safe and follow us if you like it.
gscomparing the chart with the RSI indicator we find ourselves with two different synthetic indicator indicates 2 lower highs (February 2013 and the other maximum dicenbre 2013) while we are on the graph with increasing maximum 2 and the other factor that 'indicator shows a clear resistance to the maximum recorded in March 2014 this makes me think that the breaking strength of 170 is nothing but a false bullish signal and does not exclude the possibility that prices will return to support 160
$GS - daily chartGoldman Sachs just broke down through a few lines of support.
could fall further to ~$157 - especially if there's continued weakness in Europe.
Goldman Sachs Is Talking To Us.For the past five years, stocks like Goldman Sachs Group Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) have led the rally in the stock market after being decimated during the Financial Crisis of 2008. After the "Too Big To Fail" banks were bailed out by the taxpayer, they have been able to borrow money from the Federal Reserve at 0%. They would use that money to buy US Treasuries and earn the interest - that's a nice free money policy, especially for the bankers who all basically went bust!
This easy money policy by the Federal Reserve has benefited firms like Goldman Sachs Group Inc. (NYSE:GS) since 2009, but the charts are warning us that the jig may be up for the "Too Big To Fail" banks. With the stock market at all time highs, Goldman Sachs Group Inc. (NYSE:GS) is 35% below its 2007 peak, and over 10% off its most recent high made in January of 2014.
With a Bearish weekly chart forming on Goldman Sachs and a proprietary time count coming into play, we will be looking to short this equity for a move lower in the coming weeks. When the time is right to enter GS for a high probability trade, we will alert all members of the Elite Round Table live. Come join myself and 3 other Pro Traders as we reveal exactly what is moving and when you should be buying and selling. This is a great time for the informed and educated trader and investor!
Evan Poechman
Elite Round Table, Pro Trader
Bonds soaring!..Probably signs of some serious instability.The rally in TLT is probably due to some instability in the system. Big banks have been weak all year. Look for a big washout this year , that takes them to areas of major support.
GS bear flag/triangleI like Short idea in Goldman Sachs (GS) here:
1) while the Dow and S&P have been trading nea rhighs I have seen a lot of divergences in the market. Weakness not only in tech but the banks also been an area of major concern. New regulation seems to have affected aspects of their business, and the future isn't looking as bright for the industry.
2) Bear flag. The stock borke down sharply in early April, and basically formed a bear flag/triangle type pattern. This pattern looks like it could resolve to downside for another move lower.
Yeasterday, it was trying to fil the gap area but closed off the lows, reasonable price for SHORT ENTRY here, next resistance zone from $160 to $162. I am looking for move to $152-$154 (TARGET) support area and potential break down if market will show us some weakness. I will ADD if it will go through lows.
GS better hold 151.A break of 151 and GS could go all the way to it's early 2013 levels. In early 2013, SPY was 140 !
