T3 Live

GS Follow Up


In January we flagged a potential square-out in GS at 248.

On January 13, GS left a signal reversal bar from 247.77 followed by a 90 degree decline to 231-232 in tandem with a test of its 50 day moving average.

This was the first such test since GS exploded in early November.

The first time the market or a stock does something such as test its 50 or declines 90 degrees in persistent run, it usually is a buying opportunity.

So Goldman bounced and back-tested its overhead 20 day line for a Holy Grail sell setup.

Yesterday, GS peeked below its 50 day and held it on the bell. It may be a successful test but if not it is an indication that liquidation is on the tape and a tell for the broad market.

Remember in early January we compared the meteoric 100 pt rally in GS into October 2007 to the current 100 pt spike.
Caveat emptor.

Leave a Comment: