Gold at $800, Oil above $93, Tech on fire, China in a boom of histrorically epic proportions and the US Dollar imploding…based on these headlines, it makes sense that Goldman Sachs hit all-time highs today.
Here’s why…they trend follow. They pile on. They stick you with the mistakes. The ‘credit crunch’?…Peeshaw…just a nuisance to Goldman.
A week ago, it looked like Glodman was about to crater. I even shorted it for the weekend as a ‘piss in the wind’ hedge (but quickly covered and blogged both trades). Funny that when I covered at $217, I got emails calling me crazy (you know who you are). Today, a week or so later, it’s back at another all-time high above $243. Phew!
Probably a China implosion is the only thing that really wrecks Goldman right now. Even so, I would buy on that carnage at some point.
If anybody is leaning on these trades in my blog title right now…it’s Goldman. Remember this:
Animals :) .
Disclosure – Long Oil, Gold, Canadian Dollar, Tech and China through selected stocks and ETF’s, but Not Goldman