GOOG Core Short Update

Whether you are already in a GOOG core short or looking at one (I wish I was looking at one as I entered before that earnings pop). I actually thought GOOG $1000 was a magnet, nut I just didn't see how GOOG would get there, it was earnings, mostly ramped in the low volume of after hours and it has stuck since, IT'S A PERFECT PLACE TO DISTRIBUTE OR SELL SHORT FOR INSTITUTIONAL SIZE TRADERS.

I think GOOG will be setting up if it is not already (I often admit I can be myopic about entries when it means very little to the big picture.)

 This 5-day chart of GOOG shows the range in which I thought GOOG would move above, even as a head fake, there are just too many reasons not to hit that range.

If you haven't already, PLEASE READ MY TWO ARTICLES LINKED AT THE TOP RIGHT OF THE MEMBERS' SITE...

Part 1) "Understanding the Head-Fake Move: How Technical Analysis Went From An Asset to a Trap"

Part 2) "Understanding the Head-Fake Move: Motivation"

*I've been busy trying to get the new website online, but I do plan on writing Part 3), " Examples of different Head Fakes and How to Use Them To Your Benefit When Everyone Else is Heading the Other Direction"

Perhaps a shorter title...?

 This is GOOG since the earnings gap up, if there is a false breakout, I'd imagine $1050 would be the target area, but I think over the big picture (like a 5 day chart) this gap up is likely the head-fake move. REMEMBER, THESE MOVES ARE ALMOST ALWAYS PROPORTIONAL TO THE PRECEDING TREND AND THE STOCK'S CHARACTER. So take a look at that 5-day chart again and you'll see, this gap up as a head fake is VERY proportional, even the rounding reversal process is there and proportional.

This 60 min chart shows you what smart money has done with the GOOG gap up, but would you really expect smart money to chase a 14% gap? If you did, then you are likely stuck in the dogma of 100 year old technical analysis and not seeing the evidence we present every single day.

 The 15 min chart shows an accumulation area to the far left, that's where smart money buys, on the cheap, on shakeouts on stop runs as price is more favorable and supply is plentiful, they don't chase +14% premiums on thin volume where no one but retail is buying.

In any case, more evidence of distribution in the area, this can come in the form of selling or short selling, both transactions come across the tape as a sale.

 WE MIGHT GET A HIGH PROBABILITY, LOWER RISK ENTRY, although I wouldn't chose GOOG as a long, the 1 min chart is positive today like the rest of the market, this is no coincidence.

 We have migration of the divergence as it hits the 3 min chart as well.


 And most excitingly, the 5 min chart is positive, it looks like someone has set up a move higher, although short term, it could be very volatile and break that $1050 level I mentioned, however, no matter how strong the divergence, only so much can be accumulated in a day so a lasting move is VERY unlikely, a head fake move is VERY likely which we can use to enter or add to short positions.

 GOOG 10 min also has a slight positive as prices dipped, this is typical accumulation behavior (accumulating in to lower prices and higher volume or "SUPPLY". Again, this is much too short to be anything more than a short duration head fake, but it can be an impressive move.

In fact if you read my two articles, you'll know that head fake moves, just like Bear market rallies, HAVE to be very strong to get the intended effect and that is to draw in buyers and create demand at higher prices.

So GOOG should be on your radar and price alerts should be set.

This Volatility stop I sometimes use on a 60 min chart is showing RSI in a negative divegrence, this isn't the ideal price environment for RSI, but it is there.