Thursday, March 22, 2007

GOOG: I'm Long



For months I've been forecasting a buying opportunity in GOOG around the end of February or early March all based on cycles. If this is a bottom in GOOG, my forecast for a low in late February or the first week of March was right on the money as GOOG made its low on March 5th! You can read about this forecast by clicking here

Another reason why I like GOOG is because of my inside week system. I posted about this method just last Sunday and said if GOOG takes out 455, I will be a buyer. I should have bought GOOG yesterday when it traded that price, but I totally forgot about it because I was in shock about what was happening to my short positions in SPY, DIA and Q'S. Fortunately GOOG opened lower today allowing me to buy it at 455.

Notice the major trend line GOOG successfully tested and now appears to be heading higher. If I am right, GOOG has a big rally coming.

5 comments:

Leo said...

Hi Kevin,
Glad i read your blog earliar this week about goog and tried to long a few call contracts today when goog was trading at $453 in the morning. it made up alot of my puts lost from yesterday. it is really fun to try out your system with real money though. thanks

Atiq said...

Kevin, I bought June 500 calls last Friday for 6.70 (and very happy with 30% gain in a week). But I am confused about holding through the earnings (mid April).

From experience what you think are the chances for GOOG to pop after earnings? A dollar in s/p would be 3K gain for me once it gets in the money. TIA

Kevin said...

Hi Leo,
Glad you are having fun!

Hi TIA,
There is no way for me to know what GOOG will do after earnings. I'm just going to trade the charts. If the trade is working I'll stay with it, that's all I can tell you.

Kris Tuttle said...

This was really a great call. I feel like I missed it but am wondering if you think the stock is going to make a new high from here? If so the trade might still work.

Blain Reinkensmeyer said...

Kevin, great call here man, hope the trade works out for you dude!

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