GS trade ideas
Goldman Sach
Goldman Sach is in bullish trend.
For short term price will form a corrective wave and may come down to the levels of 210.
Long term trend is bullish and we can enter once correction is over.
Goldman Sacks warns that buybacks are ‘plummeting,’Goldman warns that buybacks are ‘plummeting,’ ending a big source of buying power for the market
Corporate buybacks are “plummeting” as companies tighten their purse strings, and it could have a big impact on the market, Goldman Sachs warned in a note to clients.
In the second quarter, S&P 500 share buybacks totaled $161 billion, about 18% less than the first quarter, the firm found. The amount spent on buybacks this year is down 17% from a year earlier, although it is on track to be the second highest total on record, Goldman said.
The firm anticipates that this trend will continue, saying “early indications suggest second-quarter weakness in buybacks may persist.”
For 2019, total buybacks will drop 15% to $710 billion, and in 2020 they see a 5% decline to $675 billion, the firm predicted.
Share repurchases have been a key element during this bull market, the longest on record. By repurchasing shares, a company reduces the number of shares outstanding. It can have the effect of boosting the stock price and lifts earnings per share figures.
It’s a frequent, but not always popular, move for companies. Some argue that instead of using buybacks, companies should invest more in capital investments. And Washington is taking note. The House Financial Services Committee, for instance, is looking at ways to reform buyback spending laws.
All spending is slowing
The slowdown in buybacks is part of a larger trend of spending cuts, Goldman found, as trade uncertainty and stalling global growth weigh on the market.
Total cash spending fell by 4% year over year in the first half of the year, according to the firm. It anticipates cash spending for the entire year will decline by 6%, making it the sharpest yearly decline since 2009.
During the third quarter “CEO confidence plummeted to the lowest level since the Global Financial Crisis,” Goldman said. It cited a recent study from Duke University that found a majority of CFOs expect the U.S. will be in a recession within the next year.
“Companies spend less cash when policy uncertainty is high. During August, global economic policy uncertainty registered the highest level in at least 20 years. Historically, growth in aggregate S&P 500 cash spending has been weaker during periods of high policy uncertainty. The combination of an ongoing trade conflict and next year’s US presidential election will likely result in lingering uncertainty,” Goldman’s David Kostin wrote
GS SEMANA 21 - 25 OCTPendiente rompimiento de banderin after earnings posible momentun. PUT confirmar con rompimiento de 200EMA en 15min
$GS Long Goldman Sachs into earningsEntry level $206 = target price $222 = Stop loss $201
Bullish indicators and price action.
Support has held on numerous occasions, limiting downside.
222 remains very strong resistance.
P/E 8.59 which is extremely low.
very reasonable 2.44 yield.
Average price target $233 | Overweight.
Company profile
Goldman Sachs Group, Inc. engages in global investment banking, securities, and investment management, which provides financial services. It operates through the following business segments: Investment Banking, Institutional Client Services, Investing and Lending, and Investment Management. The Investment Banking segment gives financial advisory services and help companies raise capital. The Institutional Client Services segment serves clients who come to buy and sell financial products, raise funding, and manage risk. The Investing and Lending segment includes investing and relationship lending activities; and making investment. The Investment Management segment involves in investment and wealth advisory services. The company was founded by Marcus Goldman in 1869 and is headquartered in New York, NY.
Goldman before EarningsGoldman Sachs failed triangle formation before earnings. Some lines and connection have been averaged with step-line over log (chart is self-explanatory).
GS - Bearish TrendBear Put Spread
bought 25th Oct $210.00 Put 8x100 $7.46
sold 25th Oct $200.00 Put 8x100 $3.51
Upside projection for GoldmanTaking a 1:1 measurement of the farthest divergence from the descending trendline applied to the point of breakout gives a potential price target of around $268.
GS, Double top aead?Will this be Double Top technical formation or heading to Fibonacci 61.8 level time will tell.
My play is short with S/L tick above Fibonacci and T/P on 3% from MA200
$GS breaking out?$GS breaking out? It broke over the $210 resistance a second time. The last time this happened was after an earnings surprise and then it got brought down with the rest of the market. A breakout over $220 would confirm. The 50-day EMA is trending up and about to cross the 200-day EMA as well. Looking for a channel to be filled up to $240 or up to $275 (depending on recession indicators).
GS fell 2.42% on Tuesday trades but held on above 196.90GS - Goldman Sachs share prices fell 2.42% on Tuesday trades but managed to hold above 196.90 support level. Share prices have been on a consolidation mode for about two weeks from 204.54 to 195.00 and could continue to retest its previous resistance at 204.54 if it breaks and holds above 200.00 price level. A critical support price level is estimated at around 195.45.
GSI will take a closer look at MA200 price level and Fibonnachi 38.2.
On top of those RSI will give us a signal where the price can go.
On H4 time frame we can see some possible bullish development in front, and futures are green, at least for now
GS broadening tri, C&H, overextThis is for bullish thesis (in case of more cuts and market reacts positively). Yields ATL, TLT through the roof.
