"It's pretty rare to go from extreme upside momentum to a next-day reversal, usually there's some lateral movement or a slowing of momentum as a divergence builds. Reversals are a process, not an event so there's no need to rush out and short GOOG, let it develop, let the probabilities build and if it stays on this trajectory it should make for a nice position that came to you."
Two things that are of interest, first as mentioned above, GOOG looks thus far to be a trade (probable short) that is coming to you on your terms, at a better price entry and lower risk, although I don't think it's quite there yet.
The second thing is I wanted to see market upside action to see what the underlying trade looks like and GOOG is giving us a glimpse of that, thus far it's not exceedingly encouraging for the bullish case.
Lets take a look at GOOG now.
5 min chart of yesterday and today.
If you are nimble, GOOG may be worth a shot with a stop just above today's intraday highs, hopefully on a closing basis, otherwise I might wait for it to go lateral a bit, get a little choppy and see if there isn't a better entry with worse looking charts.
No comments:
Post a Comment