Both Goldman Sachs and Morgan Stanley have been very strong off their autumn lows, particularly Morgan, but there have been opportunities to short both of them, as we've seen in the recent posts on Morgan Stanley.
Goldman put in this TRIPLE H&S Top, which I posted here in January. The TRIPLE nested patterns measured to a target of about $72, but Goldman went well below that, to 59.13, for a loss of 36% in just two weeks' time.
Tuesday morning was another nice shorting opportunity. Goldman had a Breakaway Gap down to 92.24 from a Symmetrical Triangle, which put a target of roughly 83.54 IN PLAY. It's difficult to measure these Scottrade charts exactly, but we don't need to be exact. The target MADE with no problem and was exceeded on the downside. GS traded at 81.07 yesterday morning.
Anyone shorting the 92.24 Breakaway Gap down not only was justified for doing it, they were handsomely rewarded for doing it when the target got MADE, as they should be. That's the way these patterns and targets are SUPPOSED to work, dang it! LOL.
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