Gs .. GS ... the bull is so so strong after its large retracement to 160 area. But now it seems the bull has lost much steam at 230 area. Will it break 230 now? soon? ever?
That question we should leave to market movers for GS, but I do believe a lot of institutional big boys are supporting GS. Thus going back to 160 position seems unlikely. But a retracement is possible.
Lets look at the daily chart closely, and look for signals of bull weakness :
Sign 1 : Equally long black cdl after a long white
Sign 2 : 2 bearish engulf in a row.
Sign 3 : There has not been a single retracement since 160.
For you GS supporters out there, you may still hold call positions (I hold 1 Jan08 $280 call @$1.95 premium). the premium is now $1.65. Not sure how much value it will cont to lose. So the dillemma now is to get out, or to embrace for the fall.
But to make things clear, bearishness is not confirmed to turn into a free fall. For all we know, 220 is strong support. so is 200. But hope is never the element in my trading strategy. So I may look forward to cut tonite, if the stock falls below 227. Other than that, I will cont to hold. If it does fall below 227, I will cut and look forward to buy back at 220, 210 or 200 area. Definitely will buy back 1 call at 200.
We will see if our dear GS will be driven by bulls or bears tonite. Oh Cramer, do you know ?
