Beautiful At The Top
I am not saying that we are at THE TOP, but I have been saying that we could be due for A top. One thing that I have found to be true when trading the markets is this: It is always Doom & Gloom right before a bottom is in place, and Everything is Beautiful when we are at or near a top. Right now the buzz is all about bullish earnings, and how you need to be buying the stock market bull run. Well, we were buying at a dcl 3 weeks ago, but now? I discussed my thoughts on Googles earnings yesterday, so lets look at the charts and see what they are telling us...
I'm going to start with GOOG, because all the buzz on Twitter and in trading forums Monday was how it shot up $70 after hrs on Monday, and now GOOG & the NASDAQ would just blast off higher. People were saying that you need to just "buy this Bull Market". I wrote last week and in Monday nights report a bit of a different take on things, including Googles $60 Gap after hrs...
GOOG - I used this chart to show that it GAPPED OPEN last October after a long sideways chop, and then it just stalled, went sideways for weeks, and drifted down to fill the gap over a month later. It didn't start a giant rally then, and may not this time due to the 'timing' of things.
GOOG - Tuesday, Yes Google gapped up but it formed a Black topping candle. Black candles at the top of a move usually exhaust or end the move. I think that GOOGLE is going to stall and drift or drop soon.
