ETF CORNER

GS : Goldman Sucked in 2011.

GS : Target reached. Buy Goldman Sachs

In late January of this year I had a target for Goldman Sachs of about $115. (Click Here)

The target is now reached pretty precisely, and I wouldn't go short Goldman Sachs here. 

I think this piece of crap could bounce up to $140 at least !

GS/SPY : What's wrong Goldman ?

I've been going thru the chart of Goldman Sachs (since it's IPO in 1999) and the chart of the S&P since 1999, and I have one observation to make

 There has never been such a huge divergence between GS & SPY . You only need to look at the chart below to see what I mean. GS has been making lower highs for about two years now, while the S&P 500 has been making higher highs !

Goldman Sachs is now trading near $130 which is exactly the same level it was trading at in May 2009 !

If you were to take the levels of May 2009 on the S&P 500 you would get something like SPX 880 !

 

SPY/GS : Goldman Spies !

I noticed something interesting between a daily chart of Goldman Sachs in late 2010 early 2011 and the 60 minute chart of the actual SPY.

Here is the comparison between these two charts.. pretty compelling I'd say !

 

What is even more compelling is that if I zoom out of the 60 minute chart of the SPY and switch it into a daily chart... we get an interesting pattern that looks like this :