TECHNICALS-GS

One of the fine writers at minyanville.com Bennet Sedacca is out with commentary on GS and mentions that it has probably become a market proxy. Also, for the folks who haven't followed the stock, it has gone straight up as one can tell by 1) the picture and 2) the ADX reading- an indicator which measures the strength of the current trend. Bennet says that when the readings gets between 40 and 60 the chances are pretty good that the tide is going to turn and the equity may be a good short.

I always keep a close eye on GS and have been long for most of this recent rally. However, it is now on a tight leash and I will sell if it gets below the 174.5 level. Of course that doesn't mean I can't buy it back the next day.