GS Update

There are a number of positions this morning that I still like or like even better, GOOG is another one, watch the intraday momentum indicators and if you don't have some of our other tools, ROC (Rate of Change) applied to price with about a 12 setting, if you can't apply it directly to price, apply a 1-bar moving average to price, make it invisible and apply ROC to the moving average which is exactly the same as price.

For equity shorts, there's no problem waiting for price today to move below yesterday's highs or close (it's still excellent positioning), for options it's a bit different.

GS has been one with a lot of member interest and we have waited a fairly long time for this set up so I applaud members for being patient with the position until it moved to a high probability/low risk/good entry point.

This morning it's showing the macro/micro type of fractal relationship in market behavior and still in good position. I prefer GS as an equity short position to take advantage of a longer trend, the entire trade set up can be found in yesterday's updates, this is just an update of that.

The charts...

 The daily GS chart moving above the resistance zone to make a higher high is what we've been waiting for along with the 3C signals confirming it.

This is the intraday, as yesterday would be considered a Macro Head fake move for the larger trend from April lows, today would be a micro head fake with yesterday's highs/resistance area as its target. The purpose most commonly of a head fake move is to trap traders to allow positions to be moved on a larger/institutional scale and give momentum to the reversal (as trapped traders fuel momentum).

So far the intraday 1 min GS chart, negative at that high, it's still a bit early, but I'll keep an eye on this.

2 min chart's migration from yesterday's macro move.

 5 min chart above the level which creates a higher high, traders (retail) will buy this because they think the higher high breaks the downtrend.

 The 15 min chart has been very convincing as it confirmed the move up in GS, then at the negative divergence at the reversal it confirmed the downtrend, it only went sharply negative as this run to the level we were looking for started which gives me a lot more confidence in the position.

If you look closely at the 60 min chart, other than some small divergences here and there, the same is true on an even larger scale, I like to see good confirmation and then a sudden turn at the exact spot we were looking for to enter a position. This is also a very important chart at 60 mins, representing large flows.