Here is your trade on Alphabet Soup (GOOGL) (February 02, 2016)
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In this video I want to look at Google ( NASDAQ:GOOGL ) (Alphabet Soup). They reported earnings last night after the bell. The stock cranked up to an all-time high. The market, I don’t if I should say sucks here because this is a family show, but I’ll say it, the market really sucks today. A really nasty reversal, REALLY bad reversal here. Because, oh my gosh, oil is down again. So this is the volatility in the market. I’m telling you this, if the S&P was up like 1950.00, 1960.00, Google ( NASDAQ:GOOGL ) would be up at like 830.00 or so. Seriously, the fact that the stock is still up almost 5 percent, in such a horrible market, is really, really bullish. It shows that traders are coming in and they’re buying this stock. Now, you can see what happened first thing in the morning; in my view THIS, right here, was the real technical development. At 10:00, a half an hour after the opening, when the stock is up at a new intraday high. Yes it pulled back, that’s fine. And who knows where this is going to go?
I’m doing this at noon, for various reasons. But the bottom line is this: With buying coming in, and it was so aggressive that it pushed it up to a new all-time high, now this is just holding this. It wasn’t like this big, massive crescendo high, you’re never going to see that at 10:00 in the morning. If this stock was going to go down it would have gone down right here, it would have. This is where it would have started to move down, if it didn’t here. I other words, it comes back to attack this high, the enthusiasm high. First thing in the morning, “Quick, let me get some Google before everybody else does. Before everybody finds out that Google had a good quarter.” Right. Some people do actually think that way, market on open. So then when the stock pushes up above that, that shows there’s more aggressiveness. And this is not retail buyers pushing this up. Retail buyers are done in the first 5 minutes, that’s where all the money is used up. Now this is what the institutions are doing. So institutions are buying this stock. In this 5 minute period 200,000 shares were traded. Each share is $800.00, that’s a lot of money in a 5 minute period. So institutions are buying this stock. You want to be a part of it. Now, it’s difficult to buy a stock up this high. I would have a hard time doing it, I’m not doing it.
But then we look at Facebook ( NASDAQ:FB ), a little different pattern actually, but this is how Facebook ( NASDAQ:FB ) looked, a little bit like Google ( NASDAQ:GOOGL ) does right now. This is how Facebook ( NASDAQ:FB ) looked the day after they reported earnings, it was at 109.00, right? Now it’s trading at 116.00, so it’s gone up another 7 percent. The bottom line is, in this crappy market, when the fundamentals of a company are really good, traders are going to flock to that stock. Particularly when the chart is not bad, and Facebook’s ( NASDAQ:FB ) chart is not bad at all, I mean not bad at all. Google’s ( NASDAQ:GOOGL ) chart, not bad at all. It hasn’t been bad for quite a while. This is a weekly chart, you can see the uptrend. I think ultimately this stock goes to $1000.00. I think I’m pretty safe in that, another 25 percent, I haven’t given you a time frame. I’ll tell you this, it will be by April Fools’ Day, just not this year. But this is the way this stock is going. So you want to be buying this. If it happens to pullback say thank you and buy the stock. But ultimately you want to get involved here, if you are a holder, if you can just hold fear. But if you are a holder of the stock, if you can hold this for a while, then I think you’re good buying Google ( NASDAQ:GOOGL ), frankly, even at this level.
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