Sometime back in October 9 ( before this blog) of last year I put out a view that GS would trade back to $160. I was not at all sure that I should myself believe that but that is precisely the nature of having a method. In the meantime we are closing in on that target even though I would not stick around for more then one single cent beyond $140 (overlap, depending on count). So why are these guys so hot? Typically we call it â€œinside informationâ€, it helps when the treasury guy comes from your shop having made a few Blnâ€™s for himself shorting the mortgage market that un till recently he was supposed to save. Wait a few years and GS will revert back from a bank to an broker dealer. There are no principles here other than make as much as possible no matter at whoâ€™s expense., otherwise known as the survival of the fittest. Unfortunately fitness has absolutely nothing to do with it.
By the way, this is a standard a-b-c if we do go to $160, otherwise another wave down could occur provide we do not exceed $140.