How Goldman Sachs Robbed You and Me of $3 Billions in 3 Months

After watching the videos below, and from months of observation of this latest global financial debacle, I am suddenly awashed with a feeling of hopelessly powerless to this gross unfairness. In which the average, hard working citizens are pouring money into the pockets of the filthy and uber rich. If you don't know what I'm talking about here, watch the video attached below for the tip of the ice berg in this on-going problem. While Goldman is arguably the best at "legalized stealing" from the moms and pops, they aren't the only crook on the block. Governments around the world (not just the U.S.) were handing out money publicly left and right in the past few months. And many still are. The whole system is rigged as Bill Cara has opined countless times in the last few years. Bill's ingenious move to relocate his operation to the Bahamas is only starting to shine in these months (to me). In addition to voting with your ballot (which is useless if the whole system is rigged), we can vote with our tax money by relocating our financial operation. However, for those of us that still rely on a day job, this is not an option. The best I can do right now is to become adequate with managing our own money instead of depending on the financial salesmen. This doesn't seem enough for me as the balance of power appears to be getting worse by the day. Our government grossly tax us on one hand and hand them out to the rich and well connected in the other. What have others done/plan to do with regard to this unfair trap us working bees are stuck in? The first video is Ratigan explaining how Goldman Sachs made \$3 billions in 3 months (tipped by Stop Investing blog). The second video is an interview with Michael Moore and Ratigan about where all these loots are going now.

Visit msnbc.com for [Breaking News][], [World News][], and [News about the Economy][]
Visit msnbc.com for [Breaking News][], [World News][], and [News about the Economy][]

Market is looking ready to continue its bear rally

Despite my pessimism, I think this bear rally may have steam to go even farther up in this run before the final flush down. Here're my reasons.

​1. We have touched the 38% Fibonacci retracement level precisely last week and have been making higher lows. See Figure 1.

​2. As I noted in the morning, the up days have noticeably more volumes than the down days in this rally.

​3. My two favourite shorts, GE and GS, are resisting to stay below their supports. In particular, Figure 2 shows that even in today's swinging moves, they closed above their intra-day supports at noon while the S&P 500 broke its intraday support at noon, just barely. In fact, today's move look a lot like TCK when it retraced (and when I unloaded), just to punch through to much higher later. If that's any indication, these two (and the market) will be breaking their long term resistances within days.

[caption id="attachment_1176" align="alignright" width="500" caption="S&P 500"]S&P 500[/caption]

[caption id="attachment_1177" align="alignright" width="500" caption="GE, GS, S&P 500"]GE, GS, S&P 500[/caption]

Posted 31 March 2009 in stocks.

SOLD -1 GS 100 APR 09 105 PUT @9.55

I'm out of GS short, which I bought at 8.72, with a small profit. This gap down today only attracted some light volume. And we're hitting the support of \$100. Light volume on a test of a strong support isn't good. So I'm lightening my short here since I still have my GE strangle to live off of in case we're tanking further as I suspect. Call me chicken, but this position is a bit too heavy to be comfortable.

[caption id="attachment_1161" align="aligncenter" width="500" caption="Goldman Sachs"]Goldman Sachs[/caption]

Posted 30 March 2009 in stocks.

Goldman Sachs, is it up or is it down?

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"]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/

Posted 25 March 2009 in stocks.

continue   →