DTT Buzz

With all the pessimism in financial stocks, and the possibility of more bank failures, Fannie Mae and Freddie Mac's shareholder equity being whipped out, it is a wonder that Goldman Sachs Inc (NYSE:GS) has formed a head and shoulders reversal (can you sense the sarcasm?)

Yesterday, just above 160, we entered GS short in our swing system based on the head and shoulder neckline break at 162.50. Over the next 4-5 weeks we are looking for GS to pullback to broadening formation (per the 2 year chart) support; that is not to say that we will continue to hold this trade until it reaches that level. We might cover on a large downside tick, then reenter on an upside push. Join our Swing System for more information about this trade; we could possibly trade GS 3 or 4 times over the coming weeks.

Keith Greff Jr
DTT Trader/ Analyst