Google (Alphabet)
Alphabet, price on resistance analysisThe price is on a short-term resistance with low bullish volume. The stock may retest the resistance and eventually create another pullback.
The informations and the strategies discussed are NOT recommendation to buy, sell or trade any securities. They are strictly for educational and illustrative purposes.
Alphabet, sideways channel & price on trendline analysisThe stock is consolidating in a sideways channel after a strong bullish movement. Now the price is on the mid-term bullish trendline. If the price continues higher and breaks the resistance level (987.00), the minimum target is around 1065.00. If the price breaks the trendline and the support it may start a strong bearish movement. The breakout must be confirmed by very high volume to avoid fakeouts or pullbacks.
The informations and the strategies discussed are NOT recommendation to buy, sell or trade any securities. They are strictly for educational and illustrative purposes.
GOOG: Go long at market open...I'm initiating a position in $GOOG at market open tomorrow. There was some kind of glitch, and the chart looks really funny, so I decided to post it for posterity. The folks at Zerohedge were gloating, looking at the stocks limit down after this glitch, it's actually just that, and in fact, trades that might have taken place were reversed as far as I know.
Either way, price hit support -before charts got messed up- so it's a really reasonable place to enter a 10% long position in $GOOG once more.
For reference, this is the way the chart looked on close:
Happy Independence Day to all Americans, and remember to go long burgers... www.zerohedge.com
Cheers,
Ivan Labrie.
The Up Trend is ToppingI prefer using log scale for high flying stocks. You can clearly tell Googl upward momentum is abating. We all know 250 advertisers dropped adds on youtube due to offensive content. Now googl is working on the issue but once you loose advertising you also loose pricing power. Getting advertisers back will likely come at a discount cost. Google faces lower add revenue will they seek to fix this issue.
We're Going Long GOOG For A BargainAlphabet's (GOOG) stock has been trending upward for quite awhile, and we've
been keeping a close eye on it. We've raised our risk level on most of the
massively expensive tech stocks due to our views on the overinflated prices
from the "Trump Trade" since the election. Already, our speculation of the
market correction seems to be in-effect dependent on the next few days'
price action with the S&P 500 ETF (SPY).
But in the meantime, we think the short term outlook for Google is bullish,
and this evinced itself when it continued its uptrend with the break of the
last up-fractal at $836.26 on Friday, March 9th. Although the option
liquidity is not our most favorite spread width, we saw a recent catalyst
occur as well with the introduction of Gmail money which will likely crush
the likes of Venmo and potentially Paypal.
Not to mention, Alphabet's subsidiary Waymo filed suit against Uber for stealing trade secrets through one of Uber's recently acquired autonomous car companies "Otto". After reading the details of what the suit entails, it revolves around a former Google employee stealing designs of proprietary LIDAR technology and using it for his autonomous truck startup (which Uber acquired). The lawsuit will likely be a hefty sum, and due to the somewhat "smoking gun" Alphabet has from email traffic showing the design in question, the odds favor Alphabet in winning the proprietary suit down the road.
From a fundamental standpoint, the Google news about the Gmail money concept will likely drive upward sentiment to execute a further uptrend following strategy. So how are we getting this at a discount?
Here's the trade:
Buy 3x Puts; 7 Apr 17 Exp; $845 Strike $10.04
Sell 6x Puts; 7 Apr 17; $850 Strike $12.37
Buy 3x Puts; 7 Apr 17; $852.50 Strike $13.85
Max Risk: $495.00
Max Sweet-Spot Reward: ~$855.00
Max Reward Passed $852.50 Strike: $255.00
Our trailing stop will follow our middle moving average currently at $825.14
and moving upward.