Monday, May 17, 2010

Trade Update

Goldman Sachs !!
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I only went long half of a position in Goldman Sachs (NYSE: GS) on the afternoon break above 140. I only took a half position because I believe there will be a re-test of the 138.5 lows. However, I recognize that I could be wrong, therefore, I needed to execute as per my previously described trade plan, but with reduced risk.
My stop is 139.5.
GS broke back above the 141.5 resistance level and even closed above that level, but is not out of the woods yet by any menas.
This week should tell us whether Goldman Sachs is trying to build a base at these levels (138-139).

As for my Visa Inc (NYSE: V) trade (bought 76.5, sold 78.9), I am glad the market offered me the opportunity to get out this morning. I timed my sell pretty near the Highs of the Day. That huge gap down indicates a big overhang of stuck longs, so there is no reason to look at swinging long Visa for the next few weeks until at least it can build a good base.

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