News today was focused the repayment of TARP funds by 10 of the big banks. This news has been circulating in the market for quite some time and I believe that it was priced into the financials. The TARP trade for most financials is finished!

In the broader market it seems that we are continuing to trade in a range. SPY has failed to close below 93 or above 95 though these levels have been purged briefly intraday. Relatively low volumes lead me to believe the big players aren’t buying or selling at these levels; until they do, we will likely maintain the range.

As a technical play, I am looking to short GS just below the $150 resistance level at half my normal size (because I am trading against the upward trend) with a target of about $140. Weakness in XLF and IYF will validate this trade. However, I must stress that a play like this requires a tight stop at $151.17 to prevent sizable losses. In this trade I am risking one point for nearly a 10 point gain. If SPY breaks its $93 support and closes below I will look to add size to my position.

I have said in previous shows that I like stocks that are leaders in a strong market and look to buy on pullbacks. This still holds true for GS as I will look to rebuild a core long position around $140 granted SPY holds above its 93 support.

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JToma