- Goldman Sachs continued its strong advance ahead of the FOMC statement, supported by expectations of lower rates, a recent IPO acquisition, and upcoming earnings.
- The uptrend remains firmly intact, with pullbacks viewed as buying opportunities.
Goldman Sachs continues to rise higher during the trading session on Tuesday ahead of the FOMC statement, which is interesting because they themselves suggest that the interest rate decision on Wednesday, although it will be a 25 basis point rate cut, they expect it to be a bit more cautious than the Wall Street consensus, which I actually concur with. But that is perhaps why they're Goldman Sachs and such big winners over the longer term.
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They recently picked up Medline's IPO, worth about 880 million. So that's part of what's pushing it. But we also have just the ex-dividend date. And we are looking at earnings on the 15th of January. So, we are within a month of earnings. Perhaps people were trying to get ahead of there as well. Nonetheless, Goldman Sachs has been in a nice uptrend for some time. It will be 50 50-day EMA offering a bit of a trip line, if you will.
Approaching the $900 Level
We are now approaching the $900 level, and quite frankly, I don't see how we don't get there. Short-term pullback should see plenty of support at the $840 level. And again, that 50-day EMA, which is just shy of the large, round, psychologically important $800 handle. I have no interest in shorting this market, and I look at each and every pullback as a potential buying opportunity.
One of the reasons that Goldman Sachs may be getting a little bit of a boost, also, is that there are going to be lower interest rates, and eventually that does help financials as they can make their living in the spread between what they borrow and what they lend for. Goldman Sachs is more or less a bank these days for some industry and institutional investors. So, it all lines up quite nicely for continuation of the uptrend that we had been in. Look for short-term pullbacks for value.
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