GS Follow Up

I already have a core short in GS at full size, if I had room to add, I'd probably be adding today. I also have a trading position open on FAZ (3x short Financials) so I'm pretty much maxed out.

GS's daily 3C chart looks nearly identical to the Financial group, XLF as posted yesterday 

There are the longer term charts in GS which are the foundation for a core/trend short and then there are the intermediate and short term charts. I've found the short term action recently to be a bit more extreme than one would normally expect before an F_O_M_C meeting in which most think either nothing will be done, nothing will be done for another year or even in to 2015 or some think they'll add 15 billion a month in additional purchases.

For example...

 When I first suggested the idea of a strong bounce week/s prior to the Oct 9 bottom and before we even had the first signs of accumulation going in to the 10/9 bottom, it was based on my watchlist of hundreds of shorts that as I said at the time, "Are so close to beautiful set ups, a market bounce would get them there". 

GS would have been one of those I included in that list with the very obvious range, a fantastic head fake short set up would have been above the range and I thought GS had a better shot than GOOG at going so, but it turns out GOOG made it above its range. This is still the area in which I would add somehow if we could ever get up there, but I did expect GS to make it on this market run.

(The indicator in the bottom window is a 10-day ATR)

 This is the daily 3C chart for GS, it looks nearly identical to the XLF daily which isn't too surprising considering it's GS.

This is the 60 min, the last run looks to have seen some strong distribution and it looks like this run (Oct. 9 starts in the red box) is even worse, leading negative and just never got a Toe-hold.

The 30 min chart shows the same so strategically this is what I like about GS. What has been surprising is the last week or really since 10/18 in general.

You know the strength of a new divergence migrates from the shortest timeframe to the longer ones, this 3 min would show there''s been something going on recently out of the ordinary and we saw that in the Q's and other averages, really it's market wide.

The trends of the shorter term charts seem to identify this the best. From Oct 9th lows we have uptrend confirmation at the green arrow, then some distribution on a gap up and some small accumulation on moves down to almost pin GS in a range, then this most recent leading negative divegrence which is similar to Financials, Tech, the averages, etc.

The action pre-F_O_M_C seems a bit more biased than usual, especially given expectations.