Not to make light of it. It’s probably a nice move for Google. But the stock is moving on it and in that regard it is hype. So I may decide to sell. Since you don’t pay me to make decisions for you I’ll not publicly make that decision. NFTRH subscribers who may have taken these trades are profitable and they are grown men and women who can make their own decisions as to what profit is acceptable as well.
The target of 590 remains, but I often sell below targets. It’s just how I do it.
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.
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.
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.