futures are currently up, gap up tomorrow? I'm holding a small position in GS due to strong finish before the end of friday's close. Will have to sell into the rally though...primary trend is still down.
GS:
Entry: 91.33 (paid high, violated rule of being too excited)
Resistance: between 5dma@ ~103, and round number of 100
Exit price: ~99 (not trying to pick the top...just taking something in between)
Stop price: risen to 95 (the start of gap up stock futures) from 85(minor support)
Rationale for entry:
1. The overall market: worst week in stock market history...huge intra-day swing of 1000 points on djin...indexes initial flush out of weak holders but later stocks came back with just minimal losses.
2. G7 nations under talks about doing all that is necessary to bring back confidence in the financial system. Just by being under negotiations would give the market a positive moral boost.
3. Financials sector showing particular strength during last hour of trading, with increasing buying strength. Meanwhile, gold (seen as haven of safety) dropped huge meaning the smart money aren't seeking safety despite the worst week of the market. They certainly aren't moving into Oil since that had a huge drop along with gold. They are moving money into financials.
4. GS considered best of breed among financials, also confirmed with positive price reversal action during last hour of trading.
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