Sunday, September 6, 2009

Let's Take A Quick Holiday Look As GS

Looking at the GS weekly chart. Extremes are evident. Divergences are not.

FIBS: Absolutely perfect 61.8% retracement from the high to low (Note: The major indexes have completed a nice 31.8% retracement which technically allows for a completed correction). IF P2 or the top B wave is completed the fibs for the corrective of this move are 125, 111 and 98.

INDICATORS: I took the chart back 5 years so you could see the fall, the divergences and some LT support levels before the fall. Red and Green lines mark what I think are the true tops and bottoms. Hard to describe how overbought the most manipulated stock of the leading market manipulator is (or how this ascent to infinity can be legitimized). TRIX, Slow Sto, MACD, RSI (might be cracking the trendline) and the massively descending MACD histogram are all teetering on the precipice, BUT REMEMBER there are no divergences which bothers me. GS is also in a battle with the 200ma at this time.

TRENDLINES: Looks like you have a choice of two channels (large and small variety) and a wedge that I do not like the look of. Price has broken the wedge and is sitting on the lower trendline of the small channel. Several support and resistance lines are featured. GS put a tail thru the upper resistance line and is struggling to get thru it. The long black diagonal bear market top line got dusted back in June (When I think this run should have topped).

What do I think? See that little orange circle and arrow? That could be considered a target, as the fib, support,50ma, lower BB and back test of the trendline all meet nice and clean at that point (GS - 111). I'm not gonna hold my breath, but (stealing one from Kenny) a Shanky Target (TM).

Sho as hell looks like she's topped out, BUT I would not put it past the manipulation train to blow thru to a new high later this year as I keep anticipating divergences to be set before the insolvent banks get their just rewards. The pump and dump may indeed be complete as valuations and insider selling are maxed out. The $DJUSFN chart at the top shows some room left to run to get to a 38% retracement.

I'll be playing it as the top is in, but would not be surprised to see one more pop. Is the sucker rally complete or will the vampire squid draw the last few remaining tid-bits of life out of the unsuspecting as the rape of America goes on without hindrance from regulators, administrators or any authoritative agency?

GL trading.

If you are a gambler, you may want to take a look at the Alt Energy section in my chartbook. Some tasty looking morsels in there, but you'd be betting against the house IMO. Just take a peek.

Daily chart can be viewed HERE.

Weekly chart better viewed HERE.

1 comment:

  1. very very interesting considering these recent articles:

    China to default on commodity hedges and banks to suffer --GS may be the one.


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