Google Went Up, Here’s Why I Am Not Happy
Guess I’ll Be Eating My Hat
About 8 hours after my “Here’s The Bet I’m Making On
Google” column was published (see
my August 17 article), the Google guys lowered the
price 50 bucks. A deal’s a deal, though. I said that it would make its high on
the first day of trading — or I’ll eat my hat. My next scheduled
webcast is for Wednesday September 1st. I’ll publish a link the night
before.
There’s a method to my madness. Through my insanity, I was
trying to bring some sanity to light here. Even though Google traded higher (but
nowhere near the 135 it was supposed to trade at), in general, it’s not a
good idea to jump on a highly hyped new issue–you’re better off waiting to see
how it will perform in the marketplace.
On Friday, the Nasdaq rallied for a solid trend day.
This action has it closing well.
Ditto for the Ps.
So what do we do? As you know, I’m a
one-day-at-a-time type of guy. And so far, the market only looks
like a pullback in a downtrend. Friday’s continued strength has the market very
overbought. Further, several of my market timing systems triggered sell signals
yesterday (08/19/04). Therefore, continue to
focus on the short side but wait for entries in light of recent strength.
As far as setups, the Semiconductor HOLDRs
(
SMH |
Quote |
Chart |
News |
PowerRating) look
poised to resume their downtrend out of a pullback.
Teva Pharmaceuticals
(
TEVA |
Quote |
Chart |
News |
PowerRating),
mentioned recently, is now set up as a Trend Pivot Pullback. Wait for an entry though
(below Thursday’s pivot low(a)), since the stock traded higher
again on Friday.
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
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