Google Making A Move

By Dr. Duru written for One-Twenty

August 8, 2007

{ RSS (XML) - Subscribe to my latest articles here: XML...... AND/OR ! }

This is just a quick Google (GOOG) stock alert. While the market has swooned wit large moves up and down, GOOG has been relatively quiet since bombing on its earnings last month. There has not been a single one-day move much above 1% since then. Today, GOOG almost made a 2% move, but, even more importantly from a technical perspective, GOOG closed above the high of that post-earnings day. Now, we can officially declare that post-earnings gap down "in play." Depending on how you measure the post-earnings gap, GOOG only needs to move another 5% or so to close the gap. This is not a large move by any stretch of the imagination, but it would be a huge psychological positive. It will confirm the stregnth of tech (in case Cisco's big post-earnings move did not already convince you!), and it will have folks talking GOOG to $600 again.

One big note of caution would be the relatively low volume in the stock during this bounce. It means that buyers are not showing much conviction, and it will not take much to scare them right back out of the stock. Note that I currently hold a hedged position in GOOG (see disclaimer here).


DR. DURU®, 2007