GS Goldman Sachs Triggers Healthy Market Pullback

by Olivier on April 16, 2010

It looks like the market indeed wants to take a breather here. We will also soon have to deal with the dreaded ‘Sell in May and go away’. It will be interesting to see how the market will handle that seasonal selling pressure. Still, this is highly unlikely to be the end of this bull market. It usually takes months for topping processes to complete and it also takes a lot of time for extremely bullish sentiment to completely die off. The market is way too strong for me to even think about going short. Instead, I’ll closely watch for buying opportunities to set up in the next few weeks.

  • ANO – Anooraq Resources: The stock fell back into the bullish triangle pattern. That raises an additional red flag. The stock has pulled back towards my original entry price. Instead of giving back all my profits I ended up with a small profit. Nothing wrong with that. Platinum Sector Overview Chart.
  • GS – Goldman Sachs: Today’s story will probably not have any long-term consequences. My best guess would be they’ll end up paying a fine. Then it will be business as usual. A few months back I posted a Video Interview with Lloyd Blankfein the Goldman Sachs CEO. I highly recommend watching it. Financials Sector Overview Chart.
  • PKL.TO – PC Gold: Held up well today. The private placement is about to close. This is one of the few stocks I would be willing to be really aggressive with if it can print new all time highs. We will see what happens.
  • LNG – Cheniere Energy: The stock has put in a thrusting move on high volume and is now in the process of building a bullish consolidation pattern. A liquid natural gas play that I have recently added to my Natural Gas Sector Overview Chart.
  • TRR.V – Trelawney Mining and Exploration: The lock-up period of a former private placement will end April 22. I want to see how the stock can handle potential selling pressure before I am willing to open a position.
  • GMO – General Moly: Somehow every price advance ends up getting sold. The market being down today sure didn’t help either. A good indicator would be to watch if TC – Thompson Creek Metals can take out the 15 – 16$ level. GMO would then most likely follow suit. Molybdenum Sector Overview Chart.
  • KIV.V – Kivalliq Energy: Not thrilled with the closing price. Then again this was a very tough day for the market. Volume is drying up and there is almost no selling pressure. The overall picture is bullish. Patience. Uranium Sector Overview Chart.
  • MMR – McMoRan Exploration: The bullish wedge is not picture perfect. But it sure looks like the stock is slowly building pressure for a move to the upside.
  • USO – US Oil Fund ETF: A close above 42 US$ will trigger technical buying with a 100 US$ price target for Crude Oil. Wait for price confirmation before pulling the trigger. A stop buy would be a way to play this scenario.

Life is ten percent what happens to you and ninety percent how you respond to it. – Lou Holtz

My public list with all my charts can be viewed here:

Have a great weekend!

Previous post:

Next post: