Goldman Sachs News
Goldman Sachs (NYSE:GS) reports earning on Tuesday, which always brings substantial interest into the large cap financial name. To many, it seems that the sentiment surrounding GS has changed to mildy positive, while the sentiment of its peer Bank of America (NYSE: BAC) hasnt been as strong. The company was just removed from the GS conviction buy list.
Goldman Sachs has rallied from a bottom of 129.50 mainly on it’s $550 million civil fraud settlement and it’s price relative to it’s $128.33 book value. Now it seems like support could be there at the 50 DMA of 137.81.
However when earnings come, throw all of recent press releases out the window. Shares of GS have always remained favorites (Both long and short) of hedge funds and day traders. These investors have made GS especially volatile and that volatility should increase this week.
The question is which way does the stock go? Unlike penny stocks, large caps like GS are much more sensitive to earnings. As we all know many hot penny stocks have provided huge returns with extremely negative earnings. That won’t be the case with shares of GS. Many are predicting that the recent settlement will have minimal impact on earnings, and the street will focus on core banking.
No matter what the result is, Tuesday’s trading should be volatile. So if you are not long yet and are interested, pick a price. Some are saying buyers will come in at the $142 level, but that remains to be seen. Once again, if you happen to go long, use a stop loss. Trading opportunities like this happen frequently, so always save some liquidity for future trades. This is just another example of why investors need to be aware and form large cap and penny stocks lists. Being prepared is part of the battle in trying to book massive gains.
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