tradesmart said:
Hi Cwang, Las Vegas sounds a dream from here under the leaden UK skies…!....and I think it’s likely that GOOG will remain at the cutting edge of innovation as the second coming of the technology bull run could be nigh (maybe….
)
Looking in enough timeframes, the target solution can generally be found and the current upside run may have reached a conclusion..
A classic
‘Bump and Run’ setup now, so a reversal to fill some of those gaps left in the last bullish week could be in store….
The immediate downside target is $450 imho.......
Hi:
Now i know you are in UK, was wondering why you only post while i am sleeping.
You amazes me with more and more charting theory every time
thanks for the bump and run article, it's an interesting one that I have never seen before.
Now, the only concern I have with the bump and run article is that, it's hard to say which two points we should use to define the bump line.
If the entire historical chart is shown on the screen, it's obvious. However, if the historical bars are shown to you one-by-one, or in real time, it's hard to determine when is a good time to draw a bump line. It's very easy to draw the bump line early, and get a quick short squeeze, unless we have something measurable to determine that, for example, the length of the lines have to match certain ratio and such.
as today's movement goes, google is refusing to break any recent low or high, just keep losing volatility. the only thing we can do now is still sit there and scalp some chump change. Now, if the two points you chose for the bump line was correct, we still need to wait a few points to be able to trade it. (shorting too close to recent high is very bad)
Patience is what we need now. Everything smells good for sure:
1. AOL took their money and became a competitor
2. we start seeing empty promises from google for word processor and spreadsheet(very bubble look-and-fee)
3. google held large amount of cash untouched (when people realized ebay's profit was the same as bank interest a few years back, ebay crashed for a moment)
4. all recent chart patterns are either gap up or bearish candles, well, a young hot stock usually can carry those baggage for long time, let's hope our patience wins
5. Shoe-shine boys start talking about buying google stock
it goes longer, let's see. now, while there aren't that much other bubble to play right now, google bubble can almost grow for ever, so it's hard to say whether it will burst soon. It's also hard to determine how much air was in the bubble, and how much was real. Yahoo earning is due next Tuesday, let's not miss that number.
