Jerry wrote:
I wanted to know your option on GOOG. For the first time GOOG posted good earnings and the stock goes down…
I’m not sure if this is the first time it dropped post-earnings but I could be wrong… I’ve been watching GOOG the last several days as it’s tried to climb back above its 200-day moving average. It looks ready to break down to me but I’ve thought that before and it didn’t happen. I still think that late March gap is begging to be filled. The chart looks really bad to me in this shorter time frame:
But when we zoom out a bit I see a huge symmetrical triangle. Based on this view I’d wait for Google to break (if & when) the bottom of the triangle before shorting it.
On a related note, can Google withstand the apparent pressure that’s on many other internet companies / stocks?
I think the Yahoo Inc. (YHOO) knife catchers have shot their wads. The stock looks ready to roll over and retest 25. It’ll probably be healthy for those lows to be retested in order to shake out the weak holders. Besides, I rarely trust V bottoms, especially after such a huge drop.
eBay Inc. (EBAY) looks like death:
and even Rackable Systems (Nasdaq: RACK) blew-up post-earning tonight. Their story is that they sell servers to Google and other big internet companies. Clearly all is not well in this space:
I think that you are absolutely right about GOOG and RACK but why short GOOG when you have so many other opportunities. It will take so much for GOOG to go down because it’s a very LOVED stock and it will probably have a lot of support. But you are very right about this sector and also this stock has a huge P/E which make one wonder on the basis of what ? It’s a search engine – not more, not less. And if yahoo is in a bad shape so will goog be if they don’t find other areas where they can get some more revenues.
what do you think about UTSI assuming existing long position ?
UTSI looks great to me as long as it’s above the July lows.