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Avoid Strength In Goldman

May 17, 2008 3:16 PM

I do not like the recent lows on Goldman (GS) in any way. It “may” reverse near $180, on further weakness, but let other’s guess. It would have to clear $203.39 to be long up near $200. Strength in that range is to be avoided. If it goes higher before lower, then $200 is likely a short. Earnings are coming up in June, I believe, and that will dictate direction. Until then, be careful long. I would have said to simply shorted it back then, but as i mentioned on May 2nd, the market has to clear 1383 to apply pressure this month, and it tested that area once, and bounced off 1383.75 and has moved higher.

The financials as a group were also a short. But the same as GS, I did not say short because of the likely overall market direction. To be long XLF on any strength here, it would need to clear $28.17. If we get strength near there, it is a sell and/or short, until proven otherwise.

Written by Tom@StockBlade.com · Filed Under GS, XLF 

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