GS is just too high technically. The stock may beat earnings and provide a rosy outlook but, I think it will tank first and then recover - it is just too high technically and any little glimpse of weakness in the credit markets, etc. will bring the stock down... We'll see - I will be riding this baby tomorrow.
Enjoy trading!
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Riding it "down" Jose?
Darwin,
Based on the below techincal signals, I knew that GS was destined to open down tomorrow - positive news, not withstanding.
http://investertech.com/tkchart/tkchart.asp?stkname=gs&px=&wt=0
Most traders are not that naive and when they see a stock so overbought like GS they actually sell on the news (after having bought on the rumor). I think GS will open red tomorrow with a support at around 119 - if it breaks 119, it will go to 115 with another support at 110 and a major long-term support at 100.
I think that GS may hit 119 and rebound from there. What is certain is that if it opens red, it will reverse at some point and may even close completely green for the day.
The key is to watch all intra-day signals and follow the signals based on volume (there will be heavy volume tomorrow - no doubt, so we won't have to worry about volume).
I will be posting intra-day comments on this blog tomorrow based on what I see - let's see how well I do. Of course, I will back it up with trades...
Thank you,
Jose
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