Goldman Sachs (GS) Offering Possible 15.21% Return Over the Next 23 Calendar Days

Goldman Sachs's most recent trend suggests a bullish bias. One trading opportunity on Goldman Sachs is a Bull Put Spread using a strike $200.00 short put and a strike $190.00 long put offers a potential 15.21% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $200.00 by expiration. The full premium credit of $1.32 would be kept by the premium seller. The risk of $8.68 would be incurred if the stock dropped below the $190.00 long put strike price.

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

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

The RSI indicator is at 62.02 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

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LATEST NEWS for Goldman Sachs

3 Stocks That Gurus, Insiders and Companies Are Buying
Mon, 21 Oct 2019 22:47:32 +0000
Overview of stocks that are 'triple buys' Continue reading…

Silver Prices Finish Higher as Gold Posts Back-To-Back Declines
Mon, 21 Oct 2019 21:18:00 +0000
Silver futures finished higher on Monday, taking advantage of a rise in appetite for riskier assets while gold posted back-to-back declines as traders kept watch on Britain’s circuitous effort to leave the European Union and awaited developments in the U.S.-China trade fight. “Silver is finally being helped by its industrial needs and participation in our economy,” George Gero, managing director at RBC Wealth Management, told MarketWatch. Month to date, prices for most-active silver futures trade around 3.7% higher, while gold futures have climbed by 1.1%, according to Dow Jones Market Data.

CEO Confidence Is Down, Goldman Sachs Says. Look for a Turnaround in 2020.
Mon, 21 Oct 2019 17:00:00 +0000
CEO confidence has fallen to its lowest level since the global financial crisis more than a decade ago, Goldman Sachs says.

Eskom’s Looming Day of Reckoning Puts Investors on Defensive
Mon, 21 Oct 2019 13:40:06 +0000
(Bloomberg) — Investors are prepared for the worst as the day of reckoning looms for Eskom Holdings SOC Ltd., the state-owned power utility seen by Goldman Sachs Group Inc as the biggest threat to the country’s economy.Yields on benchmark South African government notes are at their highest in three weeks, trumped only by junk-rated Nigeria, Turkey and Lebanon among 29 major emerging markets. Rand-denominated sovereign debt has lost 3% for dollar investors this half, the worst performance after Colombia and Argentina. Foreigners have dumped a net 25 billion rand ($1.7 billion) of the country’s bonds this year, cutting their holdings to 37% of the total, from 43% less than 18 months ago.The rand has weakened 4.6% in the half to date, and is among the five worst-performing developing-nation currencies versus the dollar. Speculative long-rand contracts retreated to the lowest level in more than three months last week, Commodity Futures Trading Commission data show. When it comes to the cost of insuring South Africa’s debt against default, only Turkey and Argentina are more expensive.Eskom, which supplies about 95% of the country’s power, has 450 billion rand ($30.5 billion) of debt and is surviving on state bailouts after massive cost overruns at two partially completed coal-fired power plants. The country endured four days of controlled blackouts last week to prevent total collapse of the grid. Power shortages and policy uncertainty have damped economic growth and plunged business confidence to multi-decade lows as investors await the government’s turnaround plan for the utility.“These outages threaten South Africa’s fragile growth profile,” Siobhan Redford, a Johannesburg-based analyst at Firstrand Bank Ltd., said in a client note. “Clarity and certainty on plans for Eskom — both in terms of financing needs and returning to a more sustainable power generation profile — are vital in boosting the confidence of both domestic and offshore investors.”South Africa will “soon” announce the appointment of a permanent chief executive officer for the utility and “shortly” release a special paper on the path the CEO and a strengthened board should take, President Cyril Ramaphosa said in a statement on Monday, in which he described Eskom’s financial situation as “untenable.”“The sheer scale of Eskom’s debt is daunting,” Ramaphosa said. “Further bailouts are putting pressure on an already constrained fiscus.”Lingering UncertaintyThe bailouts will probably widen South Africa’s budget deficit to the biggest since the financial crisis, threatening the country’s last remaining investment-grade credit rating at Moody’s Investors Service, according to a Bloomberg survey of economists. Moody’s is scheduled to review the assessment on Nov. 1, days after the mid-term budget is presented to lawmakers.A risk premium was priced in to the rand and local debt partly due to weak economic fundamentals and uncertainty on the future of Eskom, the medium-term budget policy statement and the credit assessment from Moody’s, said Elna Moolman, a Johannesburg-based economist at Standard Bank Group Ltd.Last week, the government published its latest Integrated Resource Plan, which maps out the energy mix for the next decade. It includes a switch to more green energy as the country, which sources most of its electricity from coal, faces pressure to meet emissions-reduction targets.South Africa will develop a framework to take aging coal-fired plants out of service, Ramaphosa said. While this will present challenges for communities and workers where fossil fuel-powered energy generation takes place, “it also presents opportunities for those affected to have access to technologies that are more cost-effective and better for human health.”The rand gained 0.2% to 14.7878 per dollar by 3:40 p.m. in Johannesburg. Yields on benchmark 2030 government bonds climbed four basis points to 8.97%.(Updates prices in final paragraph)\–With assistance from Ana Monteiro.To contact the reporters on this story: Renee Bonorchis in Johannesburg at rbonorchis@bloomberg.net;Colleen Goko in Johannesburg at cgoko2@bloomberg.netTo contact the editors responsible for this story: Gordon Bell at gbell16@bloomberg.net, Robert Brand, Alex NicholsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Pound May See Only a Limited Rally Even If Brexit Deal Is Passed
Mon, 21 Oct 2019 12:57:23 +0000
(Bloomberg) — Forecasts for the pound to rally above $1.35 may be too optimistic even if Boris Johnson gets approval in Parliament for his Brexit deal.Sterling opened lower after U.K. politicians failed to deliver the decisive Brexit vote that had been promised at the weekend. Still, analysis of Saturday’s debate and the comments that lawmakers made during it shows the U.K. prime minister still has a chance of getting his Brexit deal done. This has boosted the U.K. currency only modestly on Monday, in a sign that current pricing may already be reflecting optimism that the Brexit accord will eventually pass.Banks including NatWest Markets, Credit Agricole SA and Goldman Sachs Group Inc. expect the pound to rally to as high as $1.35 should Johnson’s plan get through Parliament. Sterling has already gained close to 6% this month amid growing optimism that a solution to the Brexit deadlock will be found, and the currency was little changed at $1.2996 Monday.Options gauges also suggest that a level close to $1.30 in pound-dollar is incorporating a high probability that Johnson will get his way in the House of Commons. Overnight volatility rose to its strongest level since the U.K. elections in June 2017 on bets that Commons Speaker John Bercow may allow the vote to take place Monday. This at at time when traders acknowledge high risks that the pound may weaken in the short term, as risk reversals show.Certainly, a vote in favor of the Brexit deal could see the pound rallying. This, however, may only amount to a knee-jerk reaction and investors may be looking to fade the move.Russell Silberston, a portfolio manager at Investec Asset Management Ltd., estimates the Brexit deal is already 60%-to-70% priced in, and that the currency could gain to at least $1.33 on a deal passing through Parliament.“On the negative side, however, is the relatively short transition – Dec 2020,” he said. “It seems highly unlikely we can get a free trade deal with the EU by then, so I think this tempers the medium term view.”Corporate names have already taken profit on long exposure through options. Real money accounts still prefer to sell rallies, while hedge funds’ flows run two-ways, according to three traders in Europe who asked not to be identified because they are not authorized to speak publicly.Technically, the first key resistance comes around $1.3150 and may be where a knee-jerk rally will stall. The 200-weekly moving average stands at $1.3149, while the midpoint of sterling’s losses since April 2018 comes at $1.3168. Its May 6 high is at $1.3185.(Updates with banks’ forecasts, currency level in 3rd paragraph.)To contact the reporters on this story: Vassilis Karamanis in Athens at vkaramanis1@bloomberg.net;Charlotte Ryan in London at cryan147@bloomberg.netTo contact the editors responsible for this story: Paul Dobson at pdobson2@bloomberg.net, Michael Hunter, Anil VarmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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