Bull Signal Today in Goldman Sachs

The company that everyone loves to hate, myself included. Goldman Sachs GS is expected to earn 13.75 this yr and are forecast to grow earnings 30% next to almost 18.00. Trailing p/e of 11 is well behind the SP500 ttm of 15, and my guess is that GS earnings growth rate will best the SP500 13% earnings growth forecast in 2011 if analysts 2011 earnings forecasts for GS are anywhere in the ballpark. MS is expected to grow earnings 23% next yr and carries a ttm p/e of 10 The gap open higher today after a low close yd is a bull signal on candlesticks indicating shorts are trapped and must cover. The signal must be confirmed with a breakout above today's high and yd's high. Yd lows found support on the annual and quarterly averages on a return move to the Aug-Sept price breakouts….MS has a much stronger one-day candlestick reversal signal today as it has already breached yd's highs…. The trade in Blackrock today that gapped above yd's high and Mondays high has already confirmed a a strong two day candlestick reversal signal called a “harami.” Perhaps the strongest signal within the sector can be seen in the banking sector ETF itself, the XLF. AXP is a strong component of that and should benefit in a private sector job growth environment which anecdotal evidence points towards.