Golden No More?

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What's the trade ahead of Goldman Sachs (GS) earnings Tuesday before the bell? Find out from Oppenheimer Chief Market Technician Carter Worth.

Following is a synopsis of the main points made by Carter Worth on “Fast Money.”

Typically, stock prices follow earnings, he said. That’s not exactly a headline, but it’s probably as close to a truism on Wall Street as you can get. In recent months, we've seen the stock prices of Bear Stearns (BSC) and Morgan Stanley (MS) go lower as their earnings have declined.

Goldman has, so far, been the anomaly, he added. It's stock has started to decline, but its earnings have held up - mainly as a result of some savvy trading in the mortgage-backed securities department.

Tuesday could be the moment of truth for them, Worth said. Either Goldman's stock will start to trade up, or more likely, it will trade down as their earnings start to decline, which could happen as Goldman's other businesses begin to shrink.

I think now is the time to sell Goldman, he concluded.

Karen Finerman doesn’t agree with Carter Worth’s thesis that Goldman earnings will start to decline. She'S long Goldman and optimistic about earnings.

Pete Najarian recommended long Goldman into earnings and then selling what he believes will be strong numbers.

* For an in-depth analysis of the charts used by Carter Worth please watch the video.

Symbol
Price
 
Change
%Change
GS
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Trader disclosure: On Dec. 14, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian owns (CSCO), (BIIB); Najarian owns (BSC) options, (TSO) Options, (TT) Options, (GOOG) Options, (YHOO) Options; Finerman's Firm Owns (GS), (VLO), (TSO), (WMT), (YHOO), (TWX),(INTC); Finerman's Firm Is Short (IWM), (IYR), (SPY), (IJR), (MBI); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Is Short (MDY) And Owns (MDY) Puts; Finerman's Firm Owns (MSFT) Options; Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts