Jerry wants to know my thoughts on going long GS or LEH right now. My answer is that it depends on the timeframe. Both are in long term uptrends, so I wouldn’t have that much of a problem initiating long term positions in either stock right here. However, I’d prefer to wait for a better entry, especially in LEH.
For shorter term trades I wouldn’t be looking to go long either stock just yet. I really don’t like that steep, high volume sell off in Lehman. It would have to close above its 50-day moving average for me to be interested in buying it.
Goldman looks better but the risk/reward looks to be about a poor 1:1 right here. The blue trendline looms as resistance. I’d rather buy it on a close above that trendline.
