Goldman Sachs Study (GS), Buying FAZ, TZA, ETP, VXX

 

Here we present a chart of Goldman Sachs (GS):

Of note is the possible double-top indicated by the red line. 

Current apparent trend support and resistance is shown in green. 

Goldman Sachs had its IPO and came to market in the middle of 1999.  While this chart doesn't go back quite that far, we note that the peak at the end of 2007 was roughly 8 1/2 years from the company's debut.  We are currently approximately 8 1/2 years past the low of 2009.

Elliot Wave observers may identify a hallmark 5-wave pattern from the low in early 2016 to the present price. 

Not shown on the chart are momentum indicators.  A momentum formula we use calculates that today both the Daily and Weekly momentum readings turned negative, which is of course bearish.

All of these suggest at least a temporary top is at hand. 

We've often cited Goldman Sachs stock as a general market proxy, so we view this data as relevant not just to GS and the financial sector overall but to equities in general.


FAZ is the Direxion Daily Financial Bear 3X Shares.

On its chart below, we see a year-long down trend being broken.

Accordingly we're buying FAZ if it rises to $18.45

If entered, we'll place a sell stop at $16.85


A few updates to this recent post:

We're raising our sell stop on ETP (Energy Transfer Partners) to $37.30

Our buy stop on TZA was hit yesterday at $18.60  No stop level for now.

We're lowering our buy stop on VXX to $17.90




 

 

 

 

 



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