The Goldman Trade

I scaled into Goldman with my best purchase being pretty close to the lows of the day. Now that it has bounced I have been scaling out. It is pointless to talk about such short term trades so this will be my last update. I want to be out of the stock by the end of the day as the insider selling window opens next week and some might want to monetize their bonuses. I will revisit the stock after next week.

3 comments:

nicasurfer said...

Agree with that went long GOOG today and couldn't stand the pressure.

PJ said...

David Rosenberg makes a good observation today: "the banks are going to get re-regulated and the banking analysts are probably going to be valuing the sector as utilities going forward. On this basis, a 4.1% dividend yield on the latter certainly looks a lot more attractive than the puny 1.5% yield that currently exists in the U.S. financial space. How about coming to Canada where the yield in the financials is 3.9% and 4.9% for the utilities sector. Plus – you get a better currency."

I'm skeptical about going long GS. It may be a good move, but I would prefer your utilities/healthcare bets as plays for a bounce, even if they are low beta. Financials have the potential to make a long move down. I'm not as bearish on GS as on others, in fact I don't trade GS because I don't know how to appraise them, but they do tend to correlate with other financials that look overvalued.

Anonymous said...

We're going under!

I think we sell off into the close.

No bounce today. Booyah!