Financials Look Weak — Is This The Next Trade? | The Mesh Report

Financials Look Weak — Is This The Next Trade?

Christian Tharp, CMT March 10, 2023 Comments Off on Financials Look Weak — Is This The Next Trade?

If you read our ETF Watchlist for today, you have seen we are already bearish the Financial Sector, so we didn’t have much trouble finding a stock that could fit the description for a short trade.

Today, we have Goldman Sachs (GS) on our trade watch. The stock has fallen down to a key support level, around 340. The important piece here is a break and failure to reclaim that level likely means there will be further declines.

This is a trade we like because we are getting a couple different confirmations of this being a higher probability trade than a lot of other trades. First, we have the appearance of a pretty weak market. Second, we have the added benefit of the sector itself looking weak, as well. Finally, the stock itself looks weak and is also approaching a major level of support.

The S&P 500, XLF (our financial sector proxy), and GS are all approaching meaningful support levels. Watch the video below for more details on the GS trade.

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Good Luck With Your Trading!

Christian Tharp, CMT

Read More and Watch the Video at Wealthpop

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