Goldman Sachs (GS) shares are surging in after hours trading on Monday 09/22/08, up $15 or 12% from the closing price on Monday 09/23/08, on word that Warren Buffet through Berkshire Hathaway, is buying $5 billion in Goldman Sachs preferred shares. The shares closed at $125.05 in regular trading.

The shares will pay a 10% dividend. Berkshire Hathaway will also purchase $5 billion of Goldman Sachs (GS) common shares at a strike price of $115. Goldman Sachs (GS) in a separate deal will also raise $2.5 billion in a common stock offering.

In addition to Goldman Sachs (GS), the news is sending shares of Morgan Stanley (MS) higher, as well as S&P 500 (SPY) futures, which if holds, could mean a higher stock market at the open. Morgan Stanley (MS) shares are up $4 or 14% in after hours trading, to $32

If the stock market does open higher, traders might want to be careful not to get caught up in a bear trap. We will be getting Crude Inventories numbers for last week as well as Existing Home Sales numbers. These could possibly lead the market lower. So it might be prudent to wait until after 10 AM when those number come out, before initiating trades on Tuesday 09/24/08.

In addition to Goldman Sachs (GS), the news is sending shares of Morgan Stanley (MS) higher, as well as S&P 500 (SPY) futures, which if holds, could mean a higher stock market at the open.

If the stock market does open higher, traders might want to be careful not to get caught up in a bear trap. We will be getting Crude Inventories numbers for last week as well as Existing Home Sales numbers.

These could possibly lead the market lower. So it might be prudent to wait until after 10 AM when those number come out, before jumping into the market on Tuesday 09/24/08