Watch GOOG During Earnings Season–Here’s Why

The
stock market showed it still has some buyers left after the 3
months of corrective action we saw from January through March.

 

 

The morning started out very
poorly on Tuesday, but then buyers liked the prices they saw as they bid
prices up.  While the indexes were seesawing below key averages (NASDAQ-200
Day moving average) some of the interesting things to note were found in
individual stocks.  Apple Computer (AAPL) has yet to close below its
50-day and was never down on the despite this morning’s negative action.

 

 

Google (GOOG) has
acted extremely well during this correction as it has found its way back above
its 50-day moving average.  This company reports earnings towards the latter
part of April and with its leadership position in its industry, buyers may
join investors.

 

 

Since the market bottomed in
October of 2002, we have constantly seen money rotate in and out of sectors. 
I don’t think it’s any different right now as we are seeing recently-strong
energy stocks pull back.  Since this is a zero-sum game, we have already
started to see inflows into leading names that I have mentioned above. 
Additionally, there is also some strength to be seen in various retail names. 
After poor technical action from Bebe in January, the stock has
recovered and stands just off all-time highs.

 

 

At this point, it sure looks
and feels like upside has much more room than downside in this market,
especially when considering areas of strength.

 Tim Truebenbach