By Sellputs
The one long term trade i have had on this year is long Google, i initiated the trade after i noticed an interesting trading pattern developing, the "megaphone". The pattern is bullish given the context in my opinion, as it forms the price swings become larger and larger. In Google's case the swings were large at first but then the price stuck up around the upper channel Resistance. The NASDAQ at Google's back surely helped keep it bid. Google's pattern probably is not finished, though it has reached the "unattainable" target of 600 set back in early May. Maybe Google is just as good a market barometer as GS and JPM?
Whatever the case maybe it will be interested in to see where she will go from here, she has extended in overbought conditions for some time with no sign of letting up. Her tape is bullish to the extreme, in my train of thought i buy puts on spikes and calls on dips. She could go clear to 700, or down to 500... Whichever happens i wont be participating, a personal trading rule is always take your chips off the table when a pre determined price target is reached, whether profit or loss.
A couple fun patterns you can also check out:
DUG: Ultra short Oil & Gas.. she has a crazy consecutive downward skewed wedges
Current chart as of December 21, 2009
Chart on October 29, 2009
Christiaan Huygens--The Father of Cycle Theory 10-15-09
Monday, December 21, 2009
Google @ 600, im taking her off. (GOOG)
