By: Scott Redler
Today provided two great opportunities to get measured trades in Goldman Sachs (GS). The stock got slammed on Friday obviously after the news, and we came into today knowing there would be opportunities to make quick, measured trades in the stock. All you had to due was pull out a couple tools from your trading tool belt.
The 80-20 trade (aka Red Dog Reversal) worked great. The stock went through Friday’s low of 155.50 and hit 155 quick. At 9:45am, you could have bought 156-157 with stops at 155 for a quick move to 160.
Then in the afternoon the tight range resolved to the upside above 160. The SPY made new lows through lunch and GS never even came close, showing great relative strength.
So we got two scalp type trades, or you could have held the stock all day and respected the morning stop and made 5-6 points. Two great trades in a stock the world can’t figure out.
I am not taking GS into earnings, that’s not what I do.
