The Google (GOOG) Gap

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

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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.

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