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Goldman Sachs: Impressive quarter but pullback expected

|Includes: The Goldman Sachs Group, Inc. (GS)

Goldman (NYSE:GS) showed an impressive ROE of over 20% in the second quarter attributed to an improving macro environment. The stock has rallied since its low of $47.41 by tripling over the past six months. Now it’s time to move on to the next quarter. Following this V shape market recovery it is hard to maintain this growth heading into the third quarter. GS 2Q results are not sustainable, there will be a capital markets pullback with second half of 09 resembling 1Q results.  This financial shakeout has a bit more to go before we can confidently say the deterioration of the global economy has subsided.  Analysts estimate GS book value at $100, today Goldman is trading at a 60% premium. Expect the shares to pullback after earnings season is over. Trade with caution, recommendation is to short at these levels or purchase puts. “Disclosure: Long JAN10 puts @ 160″