Goldman Sachs

It's been a few days since we checked in on our favorite bellwether, but Goldman has looked too punk this week to dragoon the broad averages into light-heartedness. The stock may have a chance to show its mettle today, however, since double support lies not far below in the form of a Hidden Pivot at ____ and a moderately important low recorded last Thursday at 139.29.   Alternatively, I still like _____ as a minimum upside target for the near term, but if the stock doesn't get there soon -- say, within the next 3-4 days -- that would be a quite bearish sign. More immediately, a print below the 139.29 low today would turn the hourly chart bearish.

As you can see in the accompanying chart, Goldman was just marking time yesterday, presumably setting the hook for any bears who may have taken comfort in the stock's laggardliness. Not a single prior low was breached by the $4 selloff, and the stock went bounding into the close.  Concerning the 151.24 rally target mentioned in today's commentary, the slightly adjusted, correct target is ____. I've included a chart that shows its provenance for anyone needing to be convinced. The Hidden Pivot midpoint of the pattern is _____, so any pullback to that price today or tomorrow should be viewed as a buying opportunity. Incidentally, if Goldman makes short work of _____, it would become a good bet to run an additional 5 points to _____, the target of a larger pattern also shown in the chart.

A rally target broached here earlier is still viable and will give us a logical place to try and get short. Accordingly, if and when the stock gets within 5-10 cents of that target, buy two _____ puts (GSVD). A price of around 5.60 would be pretty attractive, but you should base your bid on the bid reflected by market makers if and when the target is closely approached.

Goldman swam strongly against the current yesterday, only to reverse sharply in the second half of the session and give up its gains, plus a little. The selloff did nothing to harm the larger uptrend, since it created bearish impulse legs only on the lesser intraday charts.  The most recent of them pointed to a Hidden Pivot at 138.75 provided its midpoint sibling at 140.32 fails. As of 12:30 a.m. the stock had gone just a penny below that threshold, but if a breakdown ensues and GS falls to the lower number, I'll recommend buying 100 shares with a 138.77 bid, stop 138.66. The trade will remain viable as long as 141.90 isn't exceeded first. _______ UPDATE (11:50 a.m.): The little s.o.b. bottomed in an apparent non-place: 139.29; then it  was off an running once again, much as we might have expected. The first tradable impulse leg, though less than impressive, pointed to 144.99, subject to midpoint resistance and possible trend failure at 143.80.

Our presumably infallible stock-market bellwether is about to uncork an 8-point rally, provided it can tackle a not-so-daunting midpoint resistance at 142.32 that lies just 25 cents above yesterday's peak.  The actual target lies at 150.72, and the way Goldman has been going, that shouldn't be more than a day's short-squeeze away. Accordingly, let's be ready to short up there by buying two October 110 puts (GSVB).  I estimate that they will be trading for around 3.80, but you should be able to narrow it down by watching the bid/offer spread for the puts when the stock gets within a point or so of the target.  The 3.80 guess is likely to be somewhat low rather than high if it misses, since put options tend to pick up volatility as a stock rallies.  I've included a snapshot of my option calculator that shows how I arrived at my estimate. Meanwhile, if opportunity should present itself intraday in the form of temporary weakness, we may attempt to leg into a calendar spread above these levels -- a strategy that has produced profits for us in the past. Stay tuned!

A close above ____ would shorten the odds of a finishing stroke to at least _____. Both numbers -- respectively, a Hidden Pivot midpoint pivot and a 'D' rally target -- occur in the pattern shown in the accompanying chart. Ordinarily I would suggest laying in some calendar spreads at the 150 strike to play this move, but the spreads are quite pricey and

The stock's last thrust contained the kind of hidden power that creates buying opportunities. Specifically, the high at 144.86 exceeded two prior peaks -- including an "external" at 142.00 from early October --but without getting past a more obvious September 19 high at 144.98 that the riff-raff would

Fear that Goldman's psychotic spree could hit $160 seems to have pervaded the chat room on Monday, so perhaps the stock is actually close to a top. Or maybe not. From a Hidden Pivot perspective, _____ is undeniably possible, although it would require yet more of the sort of elongated

Goldman's narrow failure to surpass an autumn peak at 142.00 on the last rally spike suggests that the bear rally's days are numbered. Getting short could prove tricky, however, since we want to avoid doing so if the stock still has one last lunge left, as it well may. One way we'll be able to judge for ourselves whether this is likely is by observing the price action on a modest decline to _____. That is the midpoint support of