GOOG Battle Plan

We can say the same for AAPL, we have a plan for AAPL and if you aren't familiar with 3C analysis and multiple timeframes, I would direct you to this post from last night. A few members who have known me to be very bearish on the market (long term) wonder if I changed my mind when I talk about accumulation, buying, etc here and there; I didn't change my analysis of the market, but whether I'm bullish or bearish entirely depends on the timeframe and the signal given. I believe in taking whatever you can from the market, not just trading it in one direction when you have good evidence for an interim move in the other.

Now for the short term and larger term picture and general plan for GOOG (unless the market gives us a different message, which thus far it hasn't)...

 The daily chart is a great example of how traders' refusal to adapt makes them easy targets and makes Wall St. a bit more predictable. If you are a Technical trader and going by the textbook as most do, you see a bearish continuation pattern called a bear flag in GOOG, you expect the bear flag to break down through the lower support of the flag (the parallelogram), which it does and since most traders only enter on confirmation, Wall St. makes sure it does so the shorts will enter, what ever is left of the longs will sell and there's plenty of supply that Wall St. can accumulate without raising ANY suspicions because everyone knows that someone has to take the other side of the trade. If you are a Institutional firm, your orders are huge and to get them filled at good prices you need supply and lower prices if possible, this head fake move of a common bear flag provides both.

If the flag met its measuring implications GOOG would be trading somewhere around $590 right about now, instead we have a candlestick reversal (Star) on increasing volume and an upside reversal, this is causing some shorts to cover which will lift GOOG's price even more which will cause more shorts to cover and lift price more.

 Long term I'm bearish GOOG, this is why (daily chart), the recent leading negative divergence is the worst we have seen in GOOG ever so I think a year or so from now GOOG is significantly lower and I want to position for that at some point.

 In the very near term the 3 min chart above...

 And the 5 min chart suggest GOOG pulls back a bit in the next several days, the GOOG short that is open now at a -1.17% position loss and about a 1/100th portfolio loss needs to be covered, hopefully this near term signal for a pullback in GOOG will help do that and maybe at a little profit.

 The longer trend and more important than a small pullback is this 15 min chart's positive divergence, it was positive in to the bear flag o that entire ordeal was a set up from the start so they could accumulate shares, push GOOG higher and probably do the same thing I'd like to do, SELL SHORT IN TO STRENGTH AND DEMAND.

Again, this is the big, or ultimate picture, if a rally in GOOG over the medium term gets us in to a good position to enter with minimal risk and high probabilities, that's exactly what i want to do and I think that's exactly what smart money is trying to do.