Record high Profits for Goldman Sachs … here’s how they did it
Dear Trader,
It’s no secret markets go up and they go down. If you weren’t trading many of the stocks on the short side in ‘07 you missed out on some stellar trades.
Here’s where Goldman Sachs (NYSE:GS) made a ton of money.
“Goldman, which reaped a third-quarter profit by taking a “short” position on mortgages” This according to Bloomberg.
One thing that help Goldman was the removal of the “uptick rule”.
Shorting stocks is a valuable tool you need to put in your arsenal of trading for ‘08. We expect to see a great deal more “Shorting” opportunities in the new year.
Adam Hewison
Here’s a stock we want to short …
Riverbed Tech Inc on the NASDAQ
The stock we are discussing today is Riverbed Tech Inc, trading under the symbol RVBD on the NASDAQ Exchange. We have been negative on this stock for sometime and feel it still has further to go on the downside.
The market action on Monday the 17th of December can only be described as extremely negative.
Unlike most recommendation that always seem to want to buy stocks we want to short this stock looking for it to still move lower in the future.
With the removal of the uptick rule on July 6th of 2007 it now allows traders to short a stock without having to wait for an “uptick”. This is great for traders as it evens the playing field between buying and shorting securities.
Here’s a trading idea for Riverbed:
* Short Riverbed over $25.00.
* Use a stop at 28.12 to protect capital or a stop that fits your trading.
* First target zone 19.05.
* Take half of your profits at 19.05 and let the balance ride.
* Longer term target zone is in the single digits.
Every success if you take this trade.
Adam Hewison
is President of INO.com
We cannot endorse or guarantee any trade. This trade is for educationa purposes only and shows how professional traders view the markets.
