Monday, April 13, 2009

Gold, Man!

Goldman Sachs reported earnings early today. I didn't know that because I was reading the news, I found out because the professional traders posting on the decent blogs that I frequent were posting in disbelief. I hear ("read") terms such as, "WTF?!?!", " brazen,", and "huh?" Apparently, is was premature for GS to announce today. Maybe they had to one-up Wells Fargo with their premature annouce-ulation Friday? WFC still hasn't actually announced earnings, they just wanted to let us all know that it's gonna be great!

Whew, what a relief! This rally is up almost 29% in A MONTH, but we needed that warm, maternal, reassurance of STELLAR earnings by these financial groups right away. Heaven forbid that this rally loses thrust while still trying to break orbit! I must applaud PresBO, the Fed, the Treasury, and all these Wall Street clubbers for the machine-like execution of their joint effort in keeping things afloat. It is working very well right now, and yet I can't seem to stay away from listening to Jim Rogers or this guy:

That being said, here's the technicals on GS:

Price action is attempting to penetrate a 1.5 year old resistance line that sits around 128-132 today. Breaking through that channel is quite bullish, and I'd expect to see it go up for at least a couple of days before any red candles form.

But the Bear in me loves the dark, dismal side! MACD is looking tired, just like it did back in December (see arrows), and there may be a trend to follow the wedge. Since I don't have the fancy charts that light up the price on the right, I had to mouse over the point of convergence for the three lines, I got April 23 at $125.71. If GS just doesn't take off the next few days, we could see a pennant before the rally continues. Makes a good case to get in GS around $120. Even has nothing but support for GS!

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