4 Trade Ideas for Goldman Sachs: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Goldman Sachs, $GS, comes into the week at resistance and a new all-time high. It just reconnected with the 20 day SMA and this helped reset the RSI lower in the bullish zone and the MACD off its high but positive. There is no resistance above 916.50 but a target on a Measured Move to 1020. Support lower is at 888 and 872 then 838. Short interest is low at 2.4%. The stock pays a dividend with an annual yield of 1.75% and has traded ex-dividend since December 2nd.

The company is expected to report earnings next on January 15th before the open. The January options chain shows biggest open interest at the 850 put strike, then 800. On the call side it is biggest at 1000 then 900. In the February chain open interest is spread widely on the put side and is biggest below at 865 on the call side. Finally in the March chain, open interest is biggest at the 850 put and then the 940 call above and 880 below the current price.

Goldman Sachs, Ticker: $GS

Trade Idea 1: Buy the stock on a move over 916.50 with a stop at 886.50.

Trade Idea 2: Buy the stock on a move over 916.50 and add a January 910/870 Put Spread ($16.30) while selling the February 965 Call ($15.80).

Trade Idea 3: Buy the January/February 960 Call Calendar ($16.50) and sell the January 880 Puts ($10.35).

Trade Idea 4: Buy the March 870/920/980 Call Spread Risk Reversal (75 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with 2025 in the books and just 1 trading day into the New Year, equity markets showed modest weakness as they drifted lower in Holiday trading.

Elsewhere, look for Gold to continue the uptrend move toward new all-time highs while Crude Oil holds at the bottom of consolidation, threatening a renewed downtrend. The US Dollar Index continues the short term drift to the upside in consolidation while US Treasuries continue in consolidation and looking better lower. The Shanghai Composite looks to continue the sideways motion in the uptrend while Emerging Markets may be on the edge of renewing their uptrend.

The Volatility Index looks to continue to hold low in the normal range making it easier for equities to move higher. The charts of the SPY, the IWM and the QQQ remain strong on the longer timeframe. On the shorter timeframe the SPY, the QQQ continue to consolidate in the longer term uptrend. The IWM is at greater risk, having bounce from a lower low. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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