The weekly Goldman chart shows how desperate the current selling hysteria is. Not that GS should be any higher, it's only that the decline happens far quicker than I had thought. But that's true for the overall market. The XBD dropped to 75 today. Although my target is 60, I was looking for that next year. Anyway, as Morgan Stanley Goldman makes a daily 13 today, which usually marks a temp low but as you can see the weekly is at 10 and we reached my target already of 80. That means we have to drop to the 60 area going forward but could see a brief rally to 100 within 2 weeks before coming down again. In these kind of markets, the broker will hardly make any money as you can see by almost all Hedge Funds - Goldman's advantage though is that they can grab all of the other brokers business as the strongest in the group and make a decent living by that. Keep selling rallies of Goldman until the whole market settles in approx 3 weeks from here or you see the weekly 12. Down here, the risk is around 20 points to go up next week with all deeply under weekly Bollinger levels- it might make sense to reduce shorts here.
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