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Nearest Resistance: $125
Nearest Support: $117.50
Catalyst: Employee Op-Ed
Goldman Sachs(GS) is getting plenty of unwanted search attention today, the result of a
New York Times op-ed piece by Greg Smith, until yesterday an executive director at the firm's London offices. The article is scathing, arguing that the firm's culture has shifted from a focus on making money for clients to one of making money off of clients.
Not surprisingly, that unwanted attention also fuelled selling in yesterday's session.
The timing is significant for the Goldman article. That's because shares of GS broke out above resistance at $122.50 on Tuesday, buoyed by the biggest rally of the year for the
S&P 500 -- yesterday's selling nixed the buy signal that came from that breakout.
At this point, shares are consolidating as investors figure out their next moves. While the op-ed isn't likely to make a material impact on Goldman's business, traders are obviously paying attention to it; so you should too.
I also featured Golman, one of
Third Point's holdings, in "
5 Big stocks to Trade for March Gains."