Again, GS could not break out of the 150.00USD level. Volume was HUGE (28MM vs 17MM its 10-day and 3-month tech volumes). A bullish sign, the stock closed a little above the 06-29 high and close of 149.50 and 149.36USD respectively when the SPY closed at a high of 92.70. And it also closed above yesterday's close of 149.44 and today's open of 148.98. So this huge volume by definition was all green volume.
Despite this "bullish" close today, the stock will go red tomorrow at some point. Why? Very simple and just a little bit of common sense; even with such a blow out quarter and a major upgrade by a very bearish analyst, the stock really failed to push forward aggressively based on such great numbers - so tomorrow, we will see a little profit taking and at that point, it is time to drop those front-month puts (tech signals will show the right time to sell those puts).
Note: I may not trade LUFK tomorrow as I will be paying special attention and still trading GS.
Cheers!
Tuesday, July 14, 2009
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