Using the big picture charting method shown in the previous post for a couple of indexes, we apply it to today’s star stock, GOOG and see that it is approaching a measurement of its own. If only it were as easy as calculate target, deploy capital and wait for payday.
GOOG was charted several months ago showing a breakout and retest. Well, it went on and on and on and has now come to what would be the most optimistic measured target at 830. Just sayin’.
I did indeed buy a little Google based on the chart shown a few days ago, for an anticipated Santa rally. It’s an okay company with a stock chart that showed it had tested a huge support zone. My favorite tech company is Apple, but I wouldn’t touch this stock with a 10′ pole. Not until the noted support area near 400, anyway.
Think about the herd that piled into this bubble. How bad will it get as more and more of them realize the bubble popped? I am sure the wise guy traders are all out and the more alert mom & pop investors. But what about that final tier folks who only peek at their portfolio every 3 months when a statement comes? If AAPL could get a quick, panicked drop to 400 it could be a good trade if the regular stock market is still strong at the time. I’ve got it on watch.
Several weeks ago we looked at the chart of Google in the newsletter after the initial hard breakdown, to gauge what may lay ahead. The idea was a hard break, then recovery, then renewed decline (i.e. an A-B-C type correction) down to massive support.
GOOG is among the things I might like to ‘long’ for a few weeks or more, depending on FOMC and its aftermath.
Well I did and what comes up first is this: USF students show strong support for Obama again
I guess Google hasn’t sent spiders or robots to its sites with its own chart on them. The chart says that GOOG has strong support in the 625 to 650 range and is in line with the idea that the markets are merely pausing for an October fright fest, but maybe not done yet on the upside.