Bookkeeping: Initiating Goldman Sachs (GS)
Posted on Thursday, April 24th, 2008 | In Stocks to WatchIn light of my last post in regards to sector rotation I am beginning a stake in Goldman Sachs (GS). I’ve been waiting for a breakout over $185, which was the March high. We have some serious resistance at the 200 day moving average, $197, but if that breaks - the sky is the relative limit.
I am doing this to create a more balanced approach in the fund, sort of a mini barbell effect. I now have 2 homebuilders and 2 investment banks (Morgan Stanley being the other) - while in total they make up 10% or so of the fund, I need to have “something” working when the market turns to it’s early cycle play. The last few times money “flowed” from commodities to other areas (however short of time frame) the fund really suffered; so this should help to mitigate some of this suffering if we are about to embark on another rotation.
Another option would be Ultra Financial (UYG) which is double the return of the financial index. I prefer to go with the company with their hands in every piece of our government and economic system 
I’m starting Goldman Sachs with a 2.4% stake buying in the $186s…
I’ve added even more Morgan Stanley (MS) as well, to my earlier purchases today (this one is up nearly 6% today). When/if these 2 companies break above their next level of resistance (200 day moving averages) I’ll pile more into these positions… with unfettered access to the Fed’s balance sheet, with much lighter regulation than traditional banks - these guys should now be able to run wild with your taxpayer dollars
Merrill Lynch (MER), and Lehman Brothers (LEH) probably have more upside, but I consider more speculative at this time.
Long Goldman Sachs, Morgan Stanley in fund; long Morgan Stanley in personal account
Last 5 posts by Trader Mark
- Boston Globe: What Would a 2009 Depression Look Like? - November 19th, 2008
- Perfectly Hedged - November 12th, 2008
- Earnings for Perfect World (PWRD) and Energy Conversion Devices (ENER) Both Solid - November 10th, 2008
- Sequenom (SQNM) "Misses" But We Really Don't Care - October 30th, 2008
- Thoratec (THOR) Smashes Earnings; Somehow Guides Up - October 30th, 2008
200_day_moving_average, balance_sheet, economic_system, financial_index, goldman_sachs, GS, homebuilders, investment_banks, lehman_brothers, morgan_stanley, moving_averages, MS, sector_rotation, Stocks to Watch, traditional_banks, uyg
 About Trader Mark (http://fundmyfund.blogspot.com)
Mark is a self taught private investor, fascinated by the market since an early age, discovering mutual funds as a teenager in the 80s, and then moving to equities by the mid 90s. His equity focus is identifying secular growth trends, and the companies most likely to benefit from these macro trends. Stocks are identified through fundamental analysis, although basic technical analysis is used in determining entry and exit points. With a degree in Economics from the University of Michigan, a broader understanding of the economy as a whole, along with interpreting investor psychology is also a major interest for Mark. His career background has focused on financial analysis in corporate America. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.