The trade was mostly a wash. GOOG never hit the 400 the trade was waiting for. The position was liquidated on the move back down. We see on 10-14 the stock hit a high 394.50 and has not tested that level since. <a href="http://imageshack.us"><img src="http://img522.imageshack.us/img522/1775/googreactionfrom400re3.png" border="0" alt="Image Hosted by ImageShack.us"/></a>
I do not have a short position on this stock. At this time the price analysis is purely academic. <a href="http://imageshack.us"><img src="http://img522.imageshack.us/img522/7429/googbreakdownad5.png" border="0" alt="Image Hosted by ImageShack.us"/></a> We see the stock has buyers at 300. The intra day price activity indicates this level will hold when tested again. We can expect a quick acceleration to the 250 target once 300 is broken.
Google can easily get back to its IPO price.. Thats certainly the trend for the hottest companies that went public in the last 10 years. Just look at Goldman Sachs.
Although the overall market is itching to breakdown ( and it will eventually break down to test 2002 lows) , I do not think this stock will go to IPO price. There are many reasons and at 250 it will be priced below fair value. As for GS. It would be preferable for the good of the overall economy that it be put out of business. Within the next few years, I expect GS to eventually be a shadow of its current form.
GOOG 250. Probably marks the bottom. <a href="http://imageshack.us"><img src="http://img526.imageshack.us/img526/2713/goog250fe8.png" </a><br/>
US equities short term bottom. <a href="http://imageshack.us"><img src="http://img374.imageshack.us/img374/5444/2002lowspd7.png" </a><br/> small relief rally next week.