Friday, August 13, 2010

GS - Sitting on a ledge

We've used GS as a market tell before.  I am surprised that it has held up as well as it has in the past few days.  A break below 149 would reverse GS's trend to down and would have bearish implications for financial stocks and the general market. 

Below, FAZ is suggesting its only a matter of time before GS makes its move lower:


Anonymous said...

Using GS to predict the direction of the market? WTF!?!?! You ARE nuts.

Sean said...

If you don't understand the relationship between GS and the direction of the market, don't play with real money in this market.

Anonymous said...

Laugh. Look out below! GS closed near 148.

Anonymous said...

Yes. Lets watch Goldman now.

Anonymous said...

Theres lots of stocks one can watch as bellweathers.
Ive been noticing one thing that seems pertinent to my vision.

Look at SDS,QID,TWM....
specifically look at the volume...daily and weekly

and compare the last big wave down that started on June 21 concluded July 1

compare that volume with this weeks volume...daily and weekly.

We hit a 'double top' on these indexes at S+P 1129-1131

but the volume of the wave decline june 21,22,23..and then june 29 was Much more than this weeks volume.

check it out.
If volume means anything. and todays volume ,the third day down...was more of a pause..and volume was 1/3 of what the june 23 drop was.

Thats not what you could call 'strong follow through'.

Maybe monday will dive more. or maybe not.
I anticipate a possible pullback next week,maybe to 1100,and failure there, before another leg down to test S+P 1060 area,and /or below.

some zig zag whipsaw days ahead maybe.

Anonymous said...

Is anybody watching ISCO ?

Its making a cup and handle,and a reverse head and shoulders.

It broke out today,as forecasted,

Target now would be the 1.90 area

It has two resistances to overcome now

the 200 MA at 1.27 and bold resistance at 1.40

recent support at the 1.10 area held up,and ISCO took off today.

Did you Miss it ??

Anonymous said...

but...just for fun, one last comment about ISCO from an Elliott wave perspective....the great wave down from the top at 2.80 in late March to the bottom at .90 cents late June...

you can easily count
5 waves down.

That means (in EWT) the next wave structure should be 3 waves ,an ABC up, as a correction.

IF that is what will be happening now for ISCO

just to be safe,and neutral in vision...
current structure shows wave A completed.wave B completed.
and wave C is ongoing and THIS target would be maybe the 1.65-1.75 area
and EWT would call for a major wave Down after that.

This 1.70 area could also be seen as a head and shoulders resistance zone as well.

So....theres positive outlook and negative outlook.

We'd be looking at ISCO declining back to area of .90 cents -- .50 cents

IF 1.70 fails,ABC completes,and New elliott wave Down commences.

The grand story of ISCO doesnt call for a collapse,but this kind of giant downwave in the last 4 months could be seen as Wave A of an ABC correction, before new highs develop.
If so, wave B is happening now and wave C later to retest the bottoms at where we've just been, the 90 cent or lower level.

Conclusion....It would be nice to see ISCO recover and surge back to the 1.65 ,1.75 area but more importantly to thrust beyond that zone into the 1.90 and 2.00 area.

Failing at 1.65,1.70 becomes a foreboding head and shoulders.

Above 1.80 is positive territory.
and Then,holding up support at 1.75 after that.

These developments take many weeks to play out.

a good trading play for ISCO right now might be long at 1.10(this weeks low)
target 1.65 and sell.