Top Trade Ideas - Week Of April 28: Goldman Sachs

Published 04/28/2014, 08:03 AM
Updated 05/14/2017, 06:45 AM

Here is your Bonus Idea with links to the full Top Ten:

Goldman Sachs, Ticker: GS
GS
Goldman Sachs, (NYSE:GS) found resistance on the bounce higher at the previous support range between 159.75 to 161. Thursday’s Shooting Star reversal candle was confirmed lower Friday and should it continue, a Measured Move lower would target under 140. The RSI is turning back lower after making a lower high and the MACD is leveling. Should it reverse everything aligns lower. There is support at 156 and 152 followed by 147 and 138.50. Resistance higher comes at 161 and 167 followed by 170. Short interest is low at only about 2%.

Trade Idea 1: Short the stock on a continued move lower (under 159) with a stop at 162.

Trade Idea 2: Buy the May 160 Puts (offered at 3.65 late Friday) on the same trigger.

Trade Idea 3: Buy the May 9 Expiry 157.5 Puts (1.94) on the same trigger.

Trade Idea 4: Buy the May 9 Expiry 157.5/152.50 Put Spreads (1.40) on the same trigger.

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which, as the markets close out April, sees equities are looking weak. Elsewhere look for Gold to continue higher while Crude Oil takes a breather and retreats. The US Dollar Index looks better lower while US Treasuries are biased lower in the uptrend. The Shanghai Composite and Emerging Markets both are biased to the downside in the short term with the risk of both just consolidating. Volatility looks to remain low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ, despite the moves lower. Their charts suggest that the short term will feel some more pain with the QQQ weakest followed by the IWM and then the SPY. Use this information as you prepare for the coming week and trad’em well.

Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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