[GS] update

Back in March I took a swipe at Goldman Sachs but the herd proved my model wrong.   I suspected that this was going to be a WC wave.  Of course this model has an explicit bail out point which was 1 penny higher than the prior high at $175.50.



Per current snapshot below, that peak was taken out quickly thus invalidating the model.  I did not post since that time simply because the model busted and I did not see any strong EW evidence to talk about.  But I think we are now at a time when banks, including the likes of supposedly bulletproof GS are going to take a huge dive.  You'll know that the collapse is upon us for sure if the chart plunges below the blue neckline creating a H+S breakdown.  The fact that banks are not at or near new highs along with broader markets screams "bearish divergence".



Zooming in on just 2015, we got 5 clear waves up followed by 5 down and that is the definitive EW reversal signal.  In fact, there are many, many patient (read rich) investors who don't do JACK SHIT until the see this.  Why?  Because then they can watch the nature of the bounce to see if it will be a 3 wave retracement (or a wedge which counts as a 3 during retracements) back up to the level of the prior 4th. 

Oh, look.  That's just what happened.  So now these people are stepping back in short and when this breaks to a new low then we have to expect the pace to accelerate as more and more people realize that this bear is just getting started in the banks.

Note: it will not surprise me if this fills the gap above and left of red 4.  That is not my primary model at all but it could happen.  Once this breaks below the 38.2, however, chances are that it's game over for Goldy and the banksters.



If you like fundamentals with your charts, check out the recent earnings where revs dropped 18%.  Net income dropped even more than that percentage wise, from 2.24 bn ti 1.43bn (-36%!!).

Bye bye, Goldy.