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The market almost squeezed Goldman and Citibank’s short on the SPX Friday — $0.81 from making them cover their short. LOL. Right now the futs are red but if we blow through the covering(1,390) level, I’m going to margin myself up the ass and go long on anything with high beta so I can ride the squeeze for a day trade. But as of now, it looks like we are going to get some healthy correction and pull back from QE hopes.
Trade Update: Recommending short position in the S&P 500
We are recommending a short position in the S&P 500 index with a target of 1285 (roughly 5% below current levels) and a stop on a close above 1390. This morning, the Philly Fed print of -16.6, down sequentially and worse than expected, provides further evidence that weakness has extended into June.
Although yesterday’s FOMC delivered easing as expected, with a dovish statement, positive risk sentiment ahead of the FOMC had already buoyed markets. And we now think, with incremental US monetary policy on hold, the market will need to confront a deteriorating growth picture near term.
The risk to our recommendation is that the data soon reverts to the 2-percent growth path our economists expect, that China growth turns, or that European policy-makers’ rhetoric buoys risk sentiment further from here, with the upcoming end-of-June summit a focal point on this count.
via zerohedge.com
The question now is, will the banks add more to their shorts and try to push the market down faster during this week’s macro week? I think so.
2 Responses to “Almost hit $GS stop on the $SPX”
xxxHuggieBearxxx
Goldman makes the short call, then goes long as fuck to squeeze everyone. You don’t think they are playing their public calls, do you?
kneelb4me
Oh they definitely are, c’mon, it’s goldman. Their position was definitely hedged b/c if they didn’t hedge it, it would have been leaked like JPMorgan and everyone would have freak’d the fuck out.