Gs

Discussion in 'Stocks' started by nitro, Mar 8, 2010.

  1. nitro

    nitro

    GS is up about 20% from recent lows. There are three white candles on a daily chart. Normally very bullish, and even though it is extremely difficult to buy it here because of it's recent run, it probably has another $10 to go.

    Probably prudent to buy it on a pullback instead of chasing, but you may very well miss it.

    NOTE: We have a position in GS.
     
  2. bad risk reward ratio
    may reach 178 , but thats like 5%
    your risk could be well more then 5%
     
  3. nitro

    nitro

    I think the R:R, in the next week, is more like 10:3 Reward vs Risk. This is a very short term swing trade. If you can pull it off on a pullback, the R:R is probably 10:2 or better.
     
  4. dhpar

    dhpar

    gs significantly underperformed in the past few weeks due to the volcker rule hallo. with the rule not making any progress gs is clawing back some of those losses.
    it is better to play gs via april option spreads (expiring just after earnings) or a pair trade against spiders (possibly xlf as well).


    disclosure: today i took off some of my longs as gs gets close to 170 level where it all begun.
     
  5. nitro

    nitro

    GS is looking toppy. On a SIFs downturn or profit taking, it will likely underperform selling off hard.

    It is still worth trying to buy the three white candles on a hard pullback, but if this pattern fails, it is going to get pulverized.
     
  6. GG1972

    GG1972

    If it doesnt go below 171, I d go on a limb and say it breakouts to about 190
     
  7. nitro

    nitro

    I agree with the former, that $171 is a key support level now. $190 is too much to ask short term, $180 is very possible if the rally continues. The questions is if it is probable.
     
  8. nitro

    nitro

    If you took this trade, it is time to start scaling out aggressively, imo.
     
  9. nitro

    nitro

    Imo, under no circumstances should this be seen as an opportunity to buy GS.

    When overseas markets open on Sunday, the will send the market down another 20 handles.

    Too risky.
     
  10. nitro

    nitro

    GS is now on the buy list. Taking a small amount here is ok imo, but using only get-feet-wet-size and only as an investment. I have no idea where GS will be this year, but in five years it will be higher, even if broken up into IB and trading firms.

    The risk is still non-trivial, but that is why the size is small.
     
    #10     May 17, 2010