GS, Goldman Sachs update

gs jul 2012

See our Sept, 2011 blog. We had recommended this stock at about $92 where it was down 58%. Obviously the expectation was that it might do 62% but the blog is pretty confusing on that account. Also a suggested stop-loss at about $90 did not make any sense. Any way the stock did rise about $40 but never quite made it to $135. Today we are changing the count as follows;

gs jul 2012 l

Waves 1 and 2 of are not entirely clear, but the rest is. This too is a “flat” even if it looks a little tortured. The main idea is a large A-B-C that makes its low almost right away, the second low of the C wave is often not that much deeper. The thinking is that we are in the 4th wave, which may (or may not) develop as a triangle. Often minor 1 and 5 are equal, as 1 ,under one interpretation, runs from $195 to $130 or less, 5 could equal that which would take it down $65 to about $40.