Goldman Sachs (GS) Offering Possible 88.68% Return Over the Next 24 Calendar Days

Goldman Sachs's most recent trend suggests a bearish bias. One trading opportunity on Goldman Sachs is a Bear Call Spread using a strike $200.00 short call and a strike $205.00 long call offers a potential 88.68% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $200.00 by expiration. The full premium credit of $2.35 would be kept by the premium seller. The risk of $2.65 would be incurred if the stock rose above the $205.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Goldman Sachs is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Goldman Sachs is bearish.

The RSI indicator is at 43.34 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Goldman Sachs

Treasury Yields Sink to 3-Year Lows on ‘No-Limit’ Trade War Fear
Mon, 26 Aug 2019 06:48:09 +0000
(Bloomberg) — Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Global bonds rallied anew Monday with 10-year Treasury yields sinking to a three-year low as a worsening U.S.-China trade war roiled global markets.Benchmark U.S. yields dropped below 1.5% to their lowest since July 2016, while those in Japan also slid to a three-year low amid concerns that a bruising trade war will hamper global growth. Attempts by China on Monday to limit the damage from the latest exchange of tariffs between the world’s two biggest economies failed to dent appetite for bonds.With the rift growing, overnight index swaps are pricing in almost three rate cuts by the Federal Reserve by the end of the year, as Chairman Jerome Powell warned Friday that the U.S. economy faces “significant risks.” After slapping higher tariffs on Chinese goods, President Donald Trump has threatened to order American companies to leave China.“Now there’s no limit to the worst-case scenario for the trade war,” said Kei Yamazaki, a fund manager at Sumitomo Mitsui DS Asset Management in Tokyo. “While fundamentals argue for a drop in U.S. 10-year yields to around 1.25%, possible fiscal stimulus from major economies could see a rebound in yields.”In an escalation on Friday, China threatened to impose additional tariffs on $75 billion of American goods including soybeans, automobiles and oil. That prompted Trump to say he’ll hike existing duties on about $250 billion in Chinese goods, while a new round of tariffs on $300 billion of goods will be taxed at 15%, up from 10%.Monday PanicAs markets reopened Monday in Asia, investors quickly piled into haven assets. Treasury 10-year yields dropped as much as 9 basis points to 1.44%, while the benchmark in Australia tumbled by as much as 12 basis points to 0.855%, just above a record low. Japan’s 10-year yields slipped 4 basis points to minus 0.28%, raising questions over the central bank’s yield curve control policy.“Japan’s 10-year bond yields could fall toward -0.3% as JGBs have been bought without seeing much consolidation,” said Tadashi Matsukawa, head of fixed-income investment at PineBridge Investments Japan. Bouts of buying may also see the nation’s 20-year bond yields drop into negative territory this week, he said.China on Monday sought to bring a measure of calm back to markets with Caixin reporting that Vice Premier Liu He said the two sides should seek to resolve the dispute through talks. While his comments helped to pare back yen gains, their impact will be limited unless the trade frictions between the U.S. and China are resolved, said Matsukawa.“Escalation of the trade war could extend the bond rally further, with increased probability that U.S. 10s revisit all-time yield lows set in 2016,” – at 1.318%, wrote a team of strategists at Goldman Sachs Group Inc. including Praveen Korapaty. “Cross-border flows into U.S. dollar fixed income, driven by a surge in negative yielding debt, may not moderate without broad improvement in data.”Globally, the pile of negative-yielding debt has surged to roughly $16 trillion as major central banks increasingly turn dovish amid slowing growth. Treasuries have gained 8.4%, leaving them on track for their best annual performance since 2011, according to the Bloomberg Barclays U.S. Treasury Index.Trump’s renewed criticism of Powell on Friday, coupled with his call to U.S. companies operating in China to consider leaving, pummeled markets going into the weekend. This backdrop also sent a key slice of the yield curve, which is closely watched as a gauge of an impending recession, further into inversion as traders’ viewed the growth outlook as more dire and ramp up bets the Fed cuts.The gap between three-month rates and yields on 10-year Treasury notes fell Monday to a low of minus 53 basis points, the most inverted since March 2007.“The market expects substantial rate cuts but the Fed isn’t moving along that line,” said Naokazu Koshimizu, senior rates strategist at Nomura Securities Co. in Tokyo. “Short-dated yields are struggling to fall even amid concern over a deterioration in the U.S. economy, leaving the yield curve prone to inversion.”Seeking ShelterWhile investors sought shelter in major debt markets, they dumped EM currencies and bonds. The 10-year bond yields in Indonesia, often seen as a barometer of risk appetite, gained 6 basis points. The offshore Chinese yuan dropped to a record low.“The trade war between the U.S. and China is now escalating at a bewildering pace, which is likely to trigger further market volatility and expectations of ever more aggressive monetary easing from the Federal Reserve,” said Patrick Wacker, a fund manager for emerging-market fixed income at UOB Asset Management Ltd. in Singapore.\–With assistance from Filipe Pacheco, Stephen Spratt, Netty Ismail, Kazumi Miura and Chikafumi Hodo.To contact the reporters on this story: Masaki Kondo in Singapore at mkondo3@bloomberg.net;Liz Capo McCormick in New York at emccormick7@bloomberg.netTo contact the editors responsible for this story: Jenny Paris at jparis20@bloomberg.net, Tan Hwee Ann, Cormac MullenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Beware Companies That Do Not Believe in Maximizing Shareholder Value
Sun, 25 Aug 2019 15:13:06 +0000
The Business Roundtable says companies must serve all stakeholders; value investors should be skeptical Continue reading…

3 Top Bank Stocks to Buy Right Now
Sat, 24 Aug 2019 12:03:00 +0000
The falling-rate environment has produced some tempting bargains.

David Koch, dead at 79, was part of one of America's 'most important companies'
Fri, 23 Aug 2019 14:25:11 +0000
Billionaire David Koch died on Friday at the age of 79, leaving behind a complicated legacy.

Dina Powell: Goldman Sachs’s roving diplomat
Fri, 23 Aug 2019 03:20:22 +0000
“Everybody laughs about the glowing orb,” says HR McMaster, recalling a memorable image of Donald Trump’s trip to Riyadh in 2017. The photo in question shows the president, the First Lady, King Salman of Saudi Arabia, and President Abdel Fattah al-Sisi of Egypt, hands close together touching a frosted glass globe, lit eerily from within.

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