GS Black Cross in Affect
Michael Davey/CD… with a brief look at bellwether Goldman Sachs (GS)
A picture tells the story. The 200-day crossed the 50-day on GS at mid-month, suggesting any emotional rise a reasonable short-term trading opportunity for attacking short. With a head-tail developing on the day, a GS short entry, with the above moving averages as closing-basis benchmarks, looks rather textbook.
That means you’ll lose money trying to short this, I’m sure enough…so don’t try this at home. But for the sake of selling textbooks I think it is worth noting/following.
Mole here: Michael alerted me to some very interesting developments today in interest rates – in particular on the 3-month IRX which ramped up 35% today. Now by accident I pulled it up on my $VIX chart which dons a 2.0 BB and what I saw is well worth sharing:
It’s almost scary how faithful the IRX has become to snapping back inside its 2.0 BB. Based on that we should see a drop in the coming days – unless of course this is some type of third wave developing and that BB is about climb higher. Keeping my eye on this one – very interesting (pun intended).