Are You Buying Google? Read This First!
It was being brought public by the Keystone Cops. Everything that could go wrong,
did go wrong…and that’s good. I have been yelling out to anyone who would listen
that $120 was ridiculous and that you would lose 50%. Well, the deal was cut by
about 60%. Shares were cut in half and the price was lowered. Â Be rest assured,
this was not Google being nice. This was about supply and demand. Too much supply
and not enough demand. As far as the price at $85, I have no clue. I am already
seeing a broker telling you to buy the open. Obviously, that broker is taking
Prozac. How can anyone know what will happen from here? They don’t. I am
staying away…regardless of stock price. I am just not impressed with the business
acumen of the people running Google. Their actions of late leave a lot to be desired.
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The market
had a follow-through day on Wednesday. That occurs when the market, on the 4th-10th
day off of a low, moves up over 1.5% on heavier volume. One problem. While volume
was better, it was not real strong. I do not believe any rally can carry too far
without the conviction by the big money crowd absent. In fact, volume was flat
on the NYSE. Â
I
believe there is going to be more upside testing but not 100% sure. The good news:
this is the first time in months the market has a chance to show some good accumulation.
As you know, this report has nailed this down move for you since January.
 I am not so sure we are out of the woods yet. Â
How to play? I will probably start to probe some positions
in leading names. If they start to work, I will then add…and keep adding as
long as things keep working. If the breakouts fail, bye-bye. Â
Please notice that I do not have to make any grand
calls to stay way ahead of the game. I will let the pundits tell you where things
will be at the end of the year. I am still deciding on what I will eat for dinner
tonight.Â
Gary Kaltbaum
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