The market was melting down for week or so and took my favorites with it. That's the price to pay for playing with momentum stocks. I was nervous for a little while, considering we dropped under the 6 month uptrend line for a day or two. Those fears were put to rest when this week started with two strong advancing days with really strong internals (up volume and advancing issues). This leads me to believe that the market has hit a bottom and is returning to the upside.
As far as charts go, sometimes you have to make decisions without them.
I like Goldman Sachs a LOT here considering it got massacred during the selloff, even after the unreal earnings it announced. I think GS will go on a tear here as it tries to makeup lost ground. It needs to get through some resistance right above current prices but then it should run. Obama's administration has a lot more bark than bite and scared the big banks for a little while. The markets seem to have shaken that off.
For the record, the chart also looks good. GS bounced on a long-term resistance/support line going back to 2006. (I couldn't help myself.. I had to throw something in about the chart.)
Tuesday, February 2, 2010
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