I am going out on a limb today with a longer-term short on Google. Now, being that 1) I don't often trade stocks (futures only for the most part) and 2) I am by no stretch an expert on the internet sector...I don't suggest anyone go out and short GOOG today. I just go by what my charts tell me and what common sense says.
I have been thinking negative thoughts about google for some time now, possibly due to my frustration in not getting in on the longs when the stock went public not so long ago at what I remember to be about $80(?)... Anyway, this morning I read the Russell Report, as I always do, and in the second paragraph, he writes what I have been thinking for a few weeks now. In short, he talks about EBAY, YAHOO!, AMAZON, ETC...and how they all hit their respective highs and now trade at their lows. All except Google, which is just coming off it's highs.
Now, on my blog about 1 month ago, I wrote of a possible good short opportunity in GOOG between mid to upper $420. The day after I wrote that, it tanked...Clearly b/c everyone is reading my blog! My target of $390 was hit not too long after. And Google has not gotten above $400 since. I had been thinking that all were waiting for the right time to get back in and ride it all the way back up...but isn't that what we all did in 2000? Aren't we still waiting with China.com and Lucent in our portfolios? Well, my chart above shows the recent break of the long-term up trend and possibly the beginning of a new long-term down trend. I WILL NOT BUY GOOGLE...but I MAY SELL IT. I would wait for a high probibility trade at and around the upper line of the new down Channel drawn.
As always...good luck...and do your own research before trading.
Andy
1 comment:
I have been looking at this too, but I would wait for your set-up or until the whole market starts to show weakness.
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