After much waiting, Goldman Sachs (GS) is still not giving up the \$110 level. I entered my short on Monday when GS was about \$106.50. [Having regretted it that very day as GS launched vertical upward near the close to above \$110]. Then yesterday, GS threw a fit and made wild swings up and down, only to close near its open. Today, GS retraced more but managed to crawl its way out of a hole back to \$112.95. Just above the support of \$110, again.
After a historic 7% a day rally on Monday, this shallow pullback of both GS and the broad market is a textbook bullish signal staring me in the face. I can't help but feel we're going to explode upward soon. This could very well be [THE full-blown, back-up-the-cash-truck bear rally I've been expecting all year]. And yet, I'm net short in my portfolio ...
I honestly wanted to get out of this short today and go long. As I was saying in the last update, I've marked my mental stop at \$115, its recent peak. But we never saw that price again. So even though emotionally I want out, I don't have a logical reason to ditch and switch yet. So, the waiting game continues.
[caption id="attachment_1143" align="aligncenter" width="500" caption="Goldman Sachs"][/caption]
[Having regretted it that very day as GS launched vertical upward near the close to above \$110]: http://www.quantisan.com/bought-1-gs-100-apr-09-105-put-872/ [THE full-blown, back-up-the-cash-truck bear rally I've been expecting all year]: http://www.quantisan.com/a-sign-this-financial-bloodbath-is-ending-soon/