A quick note — I’m not doing a recap tonight because nothing has really changed from Friday’s recap. I think we’ll just chop around (at best) until the Fed on Wednesday…
On to Google. Grady wrote:
I have been watching GOOG for a while as it seemed to be forming a near perfect symmetrical triangle. Volume really went low as it went along the bottom of the triangle recently so I bought several Jan 350 calls. The stock has since traveled to the top of the triangle on increasing (though not great) volume. According to Murphy’s book it is about time (perhaps even a bit late) to breakout of the triangle. What are your thoughts?
Those Google bulls are one stubborn herd. THe stock has come roaring back since I proclaimed its death in early August. It found support at the top of the March gap and now looks to be in the midst of a short squeeze. I don’t know whether it’s time for it to breakout of the triangle — it looks like it could keep coiling for another month or so before the lines of the triangle touch. But I do think it’s too extended right now to make a solid more above the top of the triangle. I’d like to see some basing / consolidation in this area. So while I wouldn’t be putting new money to work in GOOG right now I’d certainly be holding on if I was long from the mid 300′s. I’d just wait and see if it can breakout.
