GS Update

This morning, the financial sector is pushing higher.  Stocks like BAC and C are creating new 52 week highs while GS and others are breaking into strong new short term highs.  Typically this is a bullish thing for the broader market, but given the fiscal cliff upcoming and continued questions about the FED involvement in the markets, It is more likely that the broader market stays bound within the 1400-1430 area.  Given the selling we saw last week on the FED’s announcement of more quantitative easing measures, the reversal risk in the market remains high.

 

It is important to note that my play on GS says little about my overall thoughts on the market.  GS is a purely technical play.  On Friday, the risk/reward scenario set up and today the stock is pushing into what I call a trend rider breakout.  These breakouts typically run for several days and I expect GS to push into the 125-127 area at least.  I have no plans to leave the stock as long it trades within the upper bollinger band.

 

gs

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Posted on December 17, 2012, in Jeffs 3k-100k. Bookmark the permalink. Leave a comment.

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