One stock that was NOT in the news today was Google (GOOGL). Here’s your trade. (July 21, 2015)
I want to talk about Google ( NASDAQ:GOOGL ). The company had great earnings; it’s almost unbelievable that the stock is still up here. This is a really bullish pattern; you have this little inside day yesterday where the stock traded, as the name implies, inside the prior days trading range. The bulls couldn’t even push it intraday above the close. The bears couldn’t even push it intraday above the open and the stock closed higher than it opened, so that’s really bullish.
Then we’ve got this one, a higher high and a higher low. I don’t really care so much that the stock closed in the middle of the range. It’s really impressive that the stock actually pushed a new high today as the S&P and just so many other things were rolling over, just kind of selling off. This is a really, really strong stock, but I want you to look at this: on the daily chart, this is the third standard deviation, this very, very wide Bollinger Band.
Stock is not supposed to be closing above that level, and it’s not, the first day it was. The second couple days it’s been drifting back inside. This stock is still so far extended that I’m just telling you; you just want to sell this stock, take your profits. Ultimately I think Google ( NASDAQ:GOOGL ) moves higher, but what’s right up above $695.35? Well, just $4.65 is what, $700.00, that’s where the stock is having trouble getting through.
So I’m telling you, take some profits here on Google ( NASDAQ:GOOGL ). I wouldn’t shorting the stock, you just don’t want to be shorting stocks in this market, but I think this a stock that you want to take some profits on. Certainly if it falls below 680.00, now the gap is in danger of being filled, at least partly, so at least keep a stop out here.
If you’re long Google ( NASDAQ:GOOGL ) here’s what I’d suggest, you’ve got to be bullish on it otherwise you’re not long; sell half, just take half off the table, be happy you did. Then keep the other half with a stop just below here, just below 678.00, make it 677.50 or something like that, that way you’re able to stay long Google ( NASDAQ:GOOGL ) as long as it’s moving up, but if it starts to roll over you don’t even have to make a decision, your trading software does it for you.
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