From the obvious pattern that hits the eye when you look at Goldman’s daily chart (see inset), I’ve culled a less obvious one that looks like it could produce a shortable top. The Hidden Pivot target where we’ll attempt to do so lies at 143.35, and I’ll suggest buying four February 140 puts if the stock should get within 15 cents of the target. To manage the risk of this trade initially, I’ll suggest ditching the position if the puts trade for 25 cents less than you paid for them. In theory this will limit a loss to about $100. I am recommending this because if the intuitively obvious pattern plays out rather than the somewhat idiosyncratic one that has seized my fancy, the stock will be on its way to a minimum 149.42 (which will be shortable too, by the way). _______ UPDATE (1:32 p.m. EST): We were stopped out, with subscribers reporting actual losses on the trade ranging from $100 to $125. The stock is now on its way to the even more promising top at 149.42 mentioned above. We’ll want to short there more aggressively than we did this time, so be ready for further instructions.
