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Tuesday, January 10, 2012

GS - bottom confirmed


Despite all the downgrades, GS has technical significance today. It has broken from its 3 month negative trend. By doing so, IMO, confirming its bottoming.

I am not a greedy person, and my technical trade was successful, hence sold out of the trade. It is overbought, but I stand by the reversion to book value thesis.  The thesis just depends on the number an investor placed on book value.  I like to think 120 is a nice number, but I will wait for GS ease from its over bought condition, then trade it again.

That may mean it chills near 97 or retest 95, I do not know. But if the market continues to be stable, can continue to push higher.

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