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The Reason For the Market Comeback

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July 29, 2010 – Comments (2) | RELATED TICKERS: GS , JPM , WFC

This morning the major indexes all reversed lower from a gap higher open. However, one stock was strong during the morning selling assault and it was Goldman Sachs Group Inc(NYSE:GS). Goldman Sachs is now trading higher on the session by over 4.00 points to $151.57. When Goldman trades higher many traders and investors feel confident that this stock knows something that nobody else does. Therefore, others traders and investors will buy other stocks and often cause a rally.

Since Goldman Sachs Group settled with the SEC over fraud charges the stock has rallied sharply higher. In early July Goldman Sachs Group Inc was trading as low as $130.00 a share. The stock will have intra-day resistance around the $152.00 - $152.50 levels.

Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com

2 Comments – Post Your Own

#1) On July 29, 2010 at 3:47 PM, davejh23 (< 20) wrote:

"When Goldman trades higher many traders and investors feel confident that this stock knows something that nobody else does. Therefore, others traders and investors will buy other stocks and often cause a rally."

What they know is that they're going to sell the GDP news tomorrow. Good or bad, the market is going to sell off on the GDP news going into the weekend...it will look like Friday the 16th...biggest down day since then...

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#2) On July 29, 2010 at 4:00 PM, davejh23 (< 20) wrote:

...then we get a run something like the end of June, beginning of July...S&P to 1,000. Just about everything looks overbought here...except for some stocks that have tanked recently on news.

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