Goldman Sachs Moves Below 50 Day Moving Average (GS)

Shares of Golman Sachs Group (NYSE: GS) have been trading lower all day. The stock has broken below its 50 day moving average indicating a possible trend reversal is taking place. Goldman (GS) is down 2.32% to $167.66 today in trading on the New York Stock Exchange.

Goldman has been a lightning rod for the uproar regarding compensation policies on Wall Street. The company is prepared to dole out huge bonuses this year after booking record breaking profits in 2009, just a year after accepting government bailout funds.

Another factor that may be weighing on this stock is a projected decrease in Q4 trading revenue, which would have a significant adverse effect on Goldman's (GS) bottom line. Although the company is often referred to as an investment bank, it really operates more like a hedge fund with an investment banking unit attached to it. A majority of Goldman's profits this year have been generated by trading and principle investments as investment banking revenue has fallen significantly. Revenue streams derived from trading and principle investments have a higher degree of risk than advisory fees generated from investment banking services.