Since this is an event driven investment thread, CELG has just been rediculously on fire , GOOG hit R at 740 today as it did last week, closer we draw to earnings momo traders taking some off not wanting to get involved with another miss from Google and a 75pt tank, so took the short on GOOG in the am pop up to 742. Like last week stock sold down right on que.
More often these days can almost feel all the other traders in the world and whats going thru their minds on many stocks. Given the momentum, FA & TA in the stock, the position of the index , proximity to earnings, can just feel what happens next, past is prologue. Earlier support act as supports and the same for tops & resistance as well. The best way to make money in the market is look for extremes in good stocks, their cyclic tops & bottoms, for all they really do is go up & down sector by sector , no great mystery.
It can be complex or simple but better to keep it KISS , usually two tags to the overbought & its "no mas" time again, plus looking back to Oct , does any trader really want to get involved with GOOG heavily? It would have been even better had it traded up to 760, that would have been ideal but 740 was more prudent in light of last earnings $9eps vs the 10.50 expected, they missed pretty badly.
Actually its three tags to the overbought, called the short this am on twitter, it always surprises me when people cannot see the R for themselves, GOOG sold right down the rest of the day momo traders saying we've made enough.
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