Sunday, July 26, 2009

Protect Initial Profits on Goldman Sachs (GS)


Preemptive Profit-Positioning:
Goldman Sachs (GS NYSE): $164.79 X $164.80
On 17 October 2008, I announced a preemptive buy-signal on Goldman Sachs (GS) at the $113.60 per share level. Goldman shares have now moved well above the $160 level.
Goldman Sachs has been a solid performer since making its way through the U.S. government’s bank stress test unscathed. The company is also now the largest financial services company to exit the government’s bank bailout program by paying $1.1 billion to buy back warrants issued to the Treasury Department.
Remember that profits should always be taken as they materialize. Goldman shares should be held for the longer-term, yet now is a good time to take partial gains off the table.
Protect initial partial-profits on Goldman Sachs (GS); there is no protective sell-stop in place on this trade.

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