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Monday, April 26, 2010

The GS target

Sucks to be Goldman right now, obviously. The management must unload this deep, thick cloud of uncertainty if they ever want their stock to appreciate. I do not know if that will happen anytime soon, but there are clear signs to where it can potentially go. (despite its valuation, uncertainty always makes a stock go down)

I do not believe the analyst who suggest GS going to book value or 100. IMO, that completely negates their worst case scenario earnings ability, and as paid analysts, is irresponsible.

A chart that I did not think I would use, needs to be seen. IMO, this is where GS is heading, then I will buy 140 Jan 2011 calls.

This is a 5 year 500SMA daily chart of GS. Look how beautifully it acts as resistance and support throughout the years.

Looks like we are approaching a time when it will act as support.

As it potentially gets to the 142-143 level, there is support around 150 and 147, so it may bounce around first. But if the negativity keeps coming, I am expecting GS to see the 5oo SMA.

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