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Goldman Sachs (NYSE: GS) once again is pushing 150, and it looks like today's thrust started a new upleg in the aftermath of a month-long pullback from 151.17 to 135.23. If GS has started a new upleg, then tomorrow's earnings could well be a catalyst for upside continuation that commenced today with Meridith Whitney's upgrade ahead of the opening bell. A hurdle of the prior high of 151.17 will trigger a next optimal target of 155-157. On the otherhand, GS has climbed from a Nov. 21 low of 47.41 to a June high of 157.17-- a triple in price-- as we approach tomorrow's earnings report. If you were a fund manager with profits in GS, would you stay long into tomorrow, or take profits just in case a "sell-the-news" scenario unfolds? Tricky call, indeed. My own sense is that after last year's debacle, risk aversion and profit- taking would be much more important to me than they might have been previously... which argues for a bout of profit-taking in GS ahead of today's closing bell. Let's see what happens. MJP 7/13/09 1:50 PM ET (149.60)
Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!
