The financials remained under the microscope on Tuesday with executives from Goldman Sachs, including CEO Llyod Blankfein, testifying before a U.S. Senate subcommittee.
Lawmakers are scrutinizing the firm’s role in the financial crisis.
As you likely know, the government is alleging, in a civil case, that Goldman fraudulently marketed a financial instrument by hiding vital information from investors, including the role that hedge fund Paulson & Co played in its creation.
Goldman has vehemently denied the charges calling them "unfounded in both law and fact.”
Meanwhile traders have been trying to make heads or tails of Goldman stock ever since fraud charges surfaced about 10 days.
Fundamentals are bullish but technicals are terrible.
What must you know to trade Goldman?
Goldman closed higher on Tuesday, says Tim Seymour. It’s noteworthy because the Financials ETF finished in the red.
(Although Fast Money was largely pre-empted by the hearings on Tuesday, we thought you might appreciate our instant insights from Monday’s show. They follow:
If you’re trying to play Goldman, I’d watch the charts, says Tim Seymour. I don’t think this is a case of getting bullish because of valuations.
I believe that Goldman Sachs is innocent, but I think $150 is the bogey, says Guy Adami. For a trader that’s an important level. Now we have to wait and see if it holds. If not the downside, could be rather sharp.
If you’re thinking about trading this name, I’d make sure to buy put protection, adds Pete Najarian.
I agree with the other traders that trouble probably still lies ahead, adds Anthony Scaramucci of Skybridge.
I added to my Goldman position at $153, counters Zach Karabell of RiverTwice on the Halftime Report. Given the magnitude of the sell-off in the stock, and their incredible earnings, I think value investors will help propel GS higher.
In the space, I'd look at a long position in Morgan Stanley, adds Joe Terranova. Goldman's pain could be their gain.
Got something to to say? Send us an e-mail at email@example.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to firstname.lastname@example.org.
CNBC.com with wires