GS Update

GS is a stock that a lot of members are interested in, I've been interested in it because for so many months I've been saying, "No, I would not short GS right now" so it has been somewhat of a bellwether for the market in a sense.

There has been clear deterioration and there is a very specific area that I'd like to see GS hit for a large short position or a put position.

If you are somewhat interested in GS there were several updates yesterday, but this last one sums things up pretty well.

As far as what we have today...

 One thing we look for is obvious/magnetic areas that will cause movement, for GS it's right above this yellow trendline, the point I was making in yesterday's last update linked above is that from a risk perspective, that's only about 5 or 6 points, somewhere around 3% or so which is really not much if you are looking at an equity short, for an options/put position, it's a big deal.

 This 5 min chart shows several areas I pointed out yesterday, accumulation at the late June/early July area and then distribution at the recent downside reversal. We have a current 3C move that is improved, but still in a negative area overall. I also point out in the linked post above, this is the reason I haven't called a specific GS trade as of yet, but I do think it's one that is showing deterioration, it's important for the position and the market.

 This is a closer intraday look at that same 5 min chart and how it made a sort of "W" accumulation area that it has lifted from today, however...

As stated above, the overall position is still much weaker than GS has been in past months, this 10 min chart is a good example of that, it does show the same positive divergence the 5 min chart shows above, but that is much less important than the overall leading negative position.

This 1 min intraday chart is interesting because it looks a lot like the market averages I showed earlier.

"If" GS continues to deteriorate from this area, this could be very significant for wither an equity short or a put position so I want to keep you up to date, especially considering how many people are interested in GS.

OK, I have some broad market charts to look at pre-F_O_M_C, if you have stock specific questions, unless they are really interesting and look like fantastic opportunities, I'll be a little bit slower on email responses because there are a hundred different things to look at in front of the F_O_M_C policy statement, especially with no press conference after.

Please do remember that there is a well documented "knee-jerk" effect after F_E_D events, so keep that in mind whichever way the market initially moves, it typically doesn't hold.