Keeping tabs on Goldman Sachs (GS) stock may be useful given its headline significance and perhaps it systemic significance. Goldman’s first public price day was May 4, 1999. Last Friday’s steep drop was the 5th largest drop on a percentage basis over the approximate 11 years of its public company life. It was an adrenaline day Friday, but Goldman has had worse days, and their price has been below the 200-day moving average numerous times without subsequent calamity.
This is a listing of the days for which the GS price increased or decreased by at least 10% ( out of 2750 days). Friday dropped 12.79%. The worst drop on January 20, 2009 was 18.96%. Three of the other four bad days were part the 2008-2009 market crash. The other bad day in the top five was in the Spring of 2000 (the Dot.com crash days). There were an unlucky 13 days for GS of 10% or more decline. All of those days, except for the one Dot.com era day were in the 2008-2009 crash days.
There were 17 days with a 10% or more increase in price (5 in the Dot.com crash days, and 12 in the 2008-2009 crash days).
Overall those strong up and down days represent approximately 1% of total trading days for GS.
The maximum one day gain was 26.48% on November 24, 2008, and the maximum one day loss was 18.96% on January 20, 2009.
Today’s end-of-day price change was about 2%. Its intra-day range was about 5%.
The full weekly history of the stock plotted against its 40-week moving average, and its price position around the mid-point of its 13-week 2 standard deviation Bollinger Bands is shown on this chart.
click image to enlarge
The Goldman roller coaster ride is not yet over — not for the faint of heart.
Holdings Disclosure:
As of April 19, 2010, we do not have current positions in any securities discussed in this document in any managed account.
Disclaimer:
Opinions expressed in this material and our disclosed positions are as of April 19, 2010. Our opinions and positions may change as subsequent conditions vary. We are a fee-only investment advisor, and are compensated only by our clients. We do not sell securities, and do not receive any form of revenue or incentive from any source other than directly from clients. We are not affiliated with any securities dealer, any fund, any fund sponsor or any company issuer of any security. All of our published material is for informational purposes only, and is not personal investment advice to any specific person for any particular purpose. We utilize information sources that we believe to be reliable, but do not warrant the accuracy of those sources or our analysis. Past performance is no guarantee of future performance, and there is no guarantee that any forecast will come to pass. Do not rely solely on this material when making an investment decision. Other factors may be important too. Investment involves risks of loss of capital. Consider seeking professional advice before implementing your portfolio ideas.
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