Thank You Goldman Sachs
Thank you Goldman Sachs
Let’s face it did you really think trading / investing was a level playing field?
If you haven’t heard the SEC has accused Goldman Sachs of fraud in the sub-prime mortgage business, I won’t even voice an opinion on the subject… the articles and opinion pieces abound.
I wanted to take this opportunity to say Thank You to Goldman Sachs, and let me explain why.
Trading in the intra-day time frame is my mainstay, and if you look at my charts below they tells a big story.
The RSI has been overbought for months, the MACD has been overbought for months, we are drastically extended from support of our 50 day and 200 day moving averages, and until Friday the ATR had dropped to below 10!
Thank you Goldman Sachs. I’ve said it before… 18 months ago when the mortgage crisis hit, we thanked them for the incredible volatility it brought to the markets.
Today I say Thank You again, for breaking us out of a dry low volatility environment that had many day traders thinking about taking an early summer vacation.
Volatility as every trader knows is critical for making profitable trades. Have a look at the $VIX, which is a measure of implied volatility of the markets.
Once again looking back to when the housing and mortgage crisis began, traders were spoiled with a VIX of 80! While lately we have been dealing with a low reading of 17-20
In the trading chat room things really perked up once the news it the wire. It can literally be exhausting to sit and stare at a market that won’t move… but Friday was back to ‘normal’; the selloff provided TTZ traders with multi point trades to the downside, re-entries on trades and many quick 5×5 scalp opportunities.
I only have Goldman Sachs to thank.
S.E.C Sues Goldman Sachs,read the New York Times Article
Category: Market Commentary
