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Stock is tanking on huge volume and looks like there are more losses to follow. The stock has still not entered oversold levels either amplifying my belief that there is still more carnage in this name. I always thought that GS was the one company that had minmal subprime exposure. Does anyone have a theory of why its tanking? Is it just going down in sympathy with the other financials or is there seriously a problem. Please advise

As I suggested in yesterday's post, the chart for GS looks very bad. While we certainly had sign of capitulation given the huge volume spike, we unfortunately did not close positive which leads me to believe that we will retest the recent lows (and possibly break them). Despite its brutal sell-off over the past two weeks, the stock is still not at oversold levels. This suggest a continued sell-off is possible. The good news is that the market usually sells off the "generals" like GS near the END of a bear market, while the "soldiers" get sold off early. Great company but be very cautious and definately DO NOT BUY until we have a positive close...even then, keep a tight stop loss.

As mentioned in my post from yesterday, I predicted that GS had more downside to come. In fact, GS fell another $30.00 in intraday trading today on more climactic volume. While we are currently trading up in after-hours trading, I do not think it is prudent to buy (or cover shorts ) until we actally have a positive close during normal trading hours. That will signal to me that a short-term bounce is likely. Trying to buy while the stock is in free-fall is like trying to catch a falling knife...a good way to get cut.

Will the bailout plan help stocks like Goldman Sachs?? Lets see how this plays out next week

Hey SA you wanna partner up on about 500,000 shares? LOL Jk I think this one and alot of the other Financials wil get exciting next week.

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All my posts are purely my opinion. Please use your own buy and sell signals and never invest in a stock you can not afford to lose money on. For a complete disclaimer click here

I'd save your money Chuck.

This is not a stock that was doing well and then the bottom fell out. This is a stock that was declining steadily for a year...then the bottom fell out.

Here is my sharpchart: GS - SharpCharts from StockCharts.com

Look at the share price prior to the drop earlier in this month. There was some hope of a rebound on Sept 8th but it ran smack into the 50dayMA and retreated as the Bollinger bands tightened...then it fell like a stone and the BB's expanded...the warning sign was when it crossed the 20dayMA.

Of course we had the artificial uptick last Thurs/Fri. Many had faith (hope??) that all would be well and there was a rise in the Accum/Dist during this time...but they will be the losers as the BB's are still expanding. The price hugged the lower band...there is more downside here to come.

The RSI is turning back the TRIX is very negative and the Accum/dist is reversing.

Here is the P&F chart



There is support at $110 to $105 but it is weak...the next support level is at about $95 and then down around $60...could we reach these levels??? I'd say there is a good possibility...especially if there is waffling on this bailout...remember, it ain't fact yet!

Here is the 5 day chart from Yahoo



Again...as with other stocks...momentum has been lost. I see negative sideways movement at best.

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I am not a stockbroker. I retired four years ago and learned charting. The opinions expressed in my posts are my own. Do your own DD and accept or reject my comments as you please.

Thanks Naamplao but i had no intentions of getting married to this one but i sure did enjoy the $8.00 RIDE !!!! Thanks for the heads up SA. WEEEEEEEEEEEEEEEEEE. i LOVE THIS MARKET!!!! Play the play and ride the ride!!!!

__________________
All my posts are purely my opinion. Please use your own buy and sell signals and never invest in a stock you can not afford to lose money on. For a complete disclaimer click here

Stocks pointed higher on Buffett-Goldman deal
Wednesday September 24, 7:38 am ET
By Stevenson Jacobs, AP Business Writer
Wall Streets heads for higher open on Buffett's $5 billion investment in Goldman Sachs


NEW YORK (AP) -- Financial markets showed some signs of stabilizing Wednesday as investor Warren Buffett's $5 billion bet on Goldman Sachs Group Inc. renewed confidence that U.S. financial firms will survive the credit crisis. Stock futures pointed to a higher opening, although the credit markets, waiting for further news on the government's bank rescue package, were still restrained.
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Buffett's Berkshire Hathaway Inc. said Tuesday it was investing at least $5 billion in Goldman -- a move Wall Street took as strong sign of support for the independent investment bank model.

Besides buying $5 billion in preferred stock, Berkshire also got warrants to buy another $5 billion in Goldman's common stock. Goldman also said late Tuesday it would raise another $2.5 billion in its own public stock offering; the company and Morgan Stanley earlier this week were granted approval to become bank holding companies, which would help them strengthen their balance sheets.

Though Buffett's move soothed nervous investors, it could also lead to new questions from lawmakers for Treasury Secretary Henry Paulson, a former co-CEO of Goldman Sachs. He and Federal Reserve Chairman Ben Bernanke are scheduled to appear before Congress for a second day Wednesday to brief lawmakers on a $700 billion bailout measure for financial services firms.

Their appearance on Capitol Hill Tuesday unnerved stock investors, who questioned whether lawmakers were beginning to doubt the necessity and form of the government bailout.

The Dow Jones industrial average futures rose 97, or 0.89 percent, to 10,951. The Dow fell more than 160 points on Tuesday.

The Standard & Poor's 500 index futures rose 11.90, or 1 percent, to 1,198.90, and the Nasdaq 100 index futures rose 15.75, or 0.95 percent, to 1,666.25.

In the bond market, demand for short-term government Treasuries remained strong as investors again sought safe places to keep cash. The yield on the 3-month Treasury bill, considered the safest short-term financial asset, was at 0.71 percent early Wednesday, down from 0.79 percent late Tuesday. In other Treasury trading, the yield on the benchmark 10-year Treasury note fell to 3.79 percent from 3.80 percent late Tuesday.

The dollar, whose weakness earlier this week contributed to intense volatility in the markets on Monday, was up against the euro and British pound. Meanwhile, gold prices rose.

Light, sweet crude for November delivery rose $2.38 to $108.99 a barrel premarket electronic trading on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average rose 0.20 percent. Britain's FTSE 100 was up 0.24 percent, Germany's DAX index was up 0.37 percent, and France's CAC-40 was up 0.11 percent.

Is a 4% pop the best GS can do with a ringing endorsement from the Oracle of Omaha---Warren Buffett. Still looks like it is going lower to me. Best case scenario is we trade sideways for a while. Old Warren is pobably right in the long-term, but there are alot better places to put your money in the short-term.

GS Goldman Sachs Group, Inc Moody's on Thursday assigned a negative outlook to the long-term ratings of Goldman and its subsidiaries. 85.43 -15.92 / -15.71%