Goldman should lead the way down if the bear is about to emerge from hibernation, as we suspect it is. Please note that it would take merely a breach of 112.50 today to turn the daily chart bearish, and a print below 112.22 to queer the 0.618 Fibonacci support associated with the most recent rally leg. Ordinarily I’d suggest trying to leverage the stock’s impending fall by buying some long-dated, way-out-of-the-money puts that we could spread off later. However, option premiums have not collapsed in this stock as they have in most others, so any speculative buying of options that we do will need to occur when the stock is hitting a rally target. Stay tuned for further guidance.
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