Pre-Market Analysis - GS 6/27

GS closed slightly above my support at 175.7 yesterday. Will it bounce back up again and reverse the downward trend that began in early May? Beats me. The above-average volume that accompanied yesterday's bearish candle tells me the bears are wrestling over control. Resistance is at high of 186.5... GS is trading at 176.06 now - lower than its close yesterday.

Fundamentals are not telling much. Granted there were reports of not-so-shabby earnings, the sentiments out there are not exactly great because the integrity of GS' financial report has been questioned. Furthermore, GS, along with the other leaders in the sector, are being downgraded - by each other. The sector sucks now. And will be so for as long as the housing and global credit crisis issues continue to plague the sector. On top of that, I'm really not expecting the public to believe that the Fed can continue to offer their helping hand... We're not seeing the bottom yet. Maybe when the rest in the sector begin to plunge in sympathy, that will be a sign...

That said, I'm wondering if there'll be some short-covering today.

Or will the bearish momentum pick up, pushing GS down to my support of 169.84?

Whatever the case, I don't think I'm going to go long on any GS calls in the near term. Esp not with the Dow setting a new 52-week low record...

Have not gone through option prices today. But I'm not expecting cheap puts today.

They were cheap yesterday though(at least for the first half of the trading session). With decent delta and gamma, I was able to pocket about $300 in profit in the first hour of the session, in 2 scalps that lasted merely 3 mins in total.

D was not exactly thrilled though- coz they were just paper trades. Ha ha.

Anyways, puts got pricey generally after lunch but I managed to find good bargains still.

By around 1:15 am, 2 candles with super small bodies and super long upper shadows began calling out to me. The 2nd candle closed below one of my supports, MACD was in bearish region and Stoch was coming down from overbought area. Checked against 30min time-frame to get another affirmation, and then I was in! I had 2 supports that were not too far down, one being a channel (which became support for the 1:30 candle and then a 2nd time for the 2:45 candle).

Barely 4 mins later, I was out. $136 profit. Real money. My first real money trade and first real money profit. Calls for celebration.

So at 2am yesterday, I went out for a smoke with D in my sexy lingerie. Woo hoo!