I already have GOOG as a core short position, Monday we started tracking deterioration in GOOG's parabolic move up, today it continues after a candlestick/volume signal yesterday. Personally if I were looking to enter or add to the position (if you didn't when it was near its highs with lower risk), I'd wait for a corrective upside move rather than chase it, there are a number of advantages including lower put premiums.
Here's what GOOG looks like today and over the last 3 days.
First I never trust parabolic moves, they tend to form right as a stock is making it's last gasp move and tend to end badly-sometimes worse downside than upside. Note also this is not the type of move that has been characteristic of GOOG over the last couple of years, it only came once demand rose a GOOG passed resistance and during Q3.
Yesterday's bearish candlestick (shooting star) combined with large volume is a reliable reversal signal on almost any timeframe, I'm not sure whether we get the confirmation candle today or not, but I'd say GOOG's run is about done.
The 2 min chart shows how quickly GOOG's underlying trade deteriorated and just as Q3 ended.
The 5 min chart has a lot of damage as it leads to a new low.
And the 10 min chart also shows the clear trend of underlying action that would not be obvious in price alone.
As mentioned and shown yesterday, longer term charts from 15-60 min are also starting to fall apart which is an unexpected bonus.
I'd set some upside price alerts and see if you can't get better positioning on GOOG, whether it's a new position or an add to or part of a phased in entry you started this week.
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