Enter Symbol

Enter Search String

Bookmark This Article

Email Article

Send this article by email

Recipient's Name
Recipient's E-mail
Your Name
Your E-mail

Author

Author's Bio and Articles
Visit Author's Website

Alerts by Email

Research Articles
Stock Ranking Changes
We never spam!

Related RSS Feeds

The Google (GOOG) Gap

By: TraderMark Friday, July 18, 2008 1:26 AM

Sectors: Computer and Technology
Symbols: AAPL, GOOG

I've been discussing the "gap" in the Google (GOOG) chart and how I felt it must be filled

(Jul 1: Cutting Apple) I wrote

That chart of Google (GOOG) still strikes me as ominous and Google *is* tech nowadays. There is about a $60 gap that looks to be filled there - again I think this could be a wonderful short (I can't do it but I would if I could) Set that stop loss over $540 and a wonderful low risk trade awaits - current price is $530.

(Jul 15: That's More Like It) I wrote

I am using 2 proxies - Google (GOOG) and the S&P 500. When the former fills its gap (remember I said it was an excellent short in the $540s range) at $460, or the S&P 500 falls to 1170 we'll deploy more to the long side.

I'm looking to add to either our best of breed names at the top of the portfolio or some of those Haynesville natural gas plays when/if we reach either of these levels. I might even go and get some Google (GOOG) back into the portfolio @ $460.

Judging by the after hours reaction to Google (GOOG) earnings it looks like that gap has a good chance to fill (down to $490s after touching down in $470s).

Once again, I cannot be short individual names in this simulation, but I can still call them out until I can actually profit from them.