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Tuesday, October 13, 2009

Trade - GS

Everyone and their mother (via the media outlets) are distributing the amazing, ground breaking story that the bearish of the bearish has down graded her only 'buy' rated stock... GS.

Why is this so worthy of mass distribution is beyond me. Since it does not makes sense to me, I used this to enter Jan call option in GS.

GS is the direct beneficiary of a stable bullish market. High frequency computer trading does extremely well in the current environment we are and were in. So I am a believer in the whisper numbers of +5.00 eps for the quarter. (Not to mention the other positive points on the quarter regarding fixed income, that she herself mentions.)

Due to the perceived negativity, GS is now nicely consolidated and currently maintaining its high momentum uptrend via the 14 sma.

If the 14 sma is broken, GS will need to break the 175 level (IMO) to truly have a break down. However, I do not think it will break the 28 sma. I am actually having a hard time seeing it break the 14 sma due to the belief in the whisper numbers.

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