Posted by 31 January 2006

January 31, 2006 Stock Market Recap

Well I was half-joking this morning when I said that the real big event for the day would be Google’s earning’s report. Turns out that was definitely the case. The action in the broader market was muted today but things heated up in the after-hours session. GOOG is down about 63 points (only about 15%) after missing their earnings estimate. It’s dragging some other stocks, and the QQQQ, down with it. Yahoo (YHOO), for example, is back near its January lows and the QQQQ is now below its 50-day moving average. It’s looking like a tough day for selected tech stocks tomorrow. (AAPL is back under its 50 DMA in the after-hours session too.)

Here’s the Nasdaq chart, which looks like it’s due for a pullback. It’s got overbought stochastic and has been hovering under that resistance around 2310.

This chart of the QQQQ include the after-hours trading, so you can see that it’s slipped under its 50-day moving average:

And finally, here’s Google’s chart, which is also showing the after-hours action. I think that October gap could be in danger of being closed. The 200-day moving average, which is at 326 today, could provide support too. Tomorrow will certainly be an interesting day for GOOG. I can’t wait to hear what the ANALysts have to say. Any bets on how many $500 target reiterations are issued tomorrow?

P.S. For those who are interested in the conference call the transcript is posted at the Internet Stock Blog.

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Comments

  1. Posted by thetradingdigest on January 31, 2006 at 11:26 pm

    I’m looking foward to the analyst downgrades, after the stock is already off 25%+ in the last few weeks…

  2. Posted by chud on January 31, 2006 at 11:47 pm

    New charting software?

  3. Posted by randy on February 1, 2006 at 12:08 am

    Smart guy — predicted Google’s earnings shortfall, while Wall Street sellside ANALysts remained extremely bullish: http://www.awadallah.com/blog/

  4. Posted by Michael on February 1, 2006 at 12:16 am

    @ Trading Digest: According to CNBC Goldman Sachs already reiterated their $500 tgt and told clients to buy on any weakness

    @ Chud: No, those charts are from CyberTrader. I only posted those b/c they show the after-hours action on the daily chart.

    @ randy: Thanks for the link. That guy nailed GOOG

  5. Posted by randy on February 1, 2006 at 12:49 am

    I guess GS may have a bunch of clients who want to get out at a more “reasonable price”. ;)

    Mike, at first I had my doubts, since that guy works for Yahoo, but then I realized he’s probably smart enough (from his background and analysis) not to perform analyses on his company’s competitor without some very solid reasoning and facts. Otherwise, he can be easily discredited as trying to “thrash rival”.

  6. Posted by thetradingdigest on February 1, 2006 at 9:58 am

    UBS did downgrade GOOG this morning, but in all fairness they upgraded it back in May, so anyone following them would w=still be feeling pretty good. Yahoo has a nice view of historical upgrades and downgrades
    here