GS – Goldman Sachs (Last:188.04)

Close but no cigar. Goldman opened on a short-squeeze gap that came within 74 cents of our target — not close enough to get us short using the strategy that was recommended. We’ll set the trade aside, but I should mention that anyone who was  long coming in yesterday might have used what I call a “dynamic trailing stop,”  keeping risk and reward in a 1:3 ratio at all times. This means that when the stock came within 74 cents of the target, an implied trailing equal to a third of that, or 25 cents, would have been in effect. I read it as moderately bearish that Goldman fell so hard without having achieved the target. Since the stock is a key bellwether for the market as a whole, we’ll need to monitor its further progress/regress closely.

Tagged as: Forecast, Goldman Sachs, GS