Wednesday, November 3, 2010

GOOGLE is showing up with a great chart pattern ...

Market continues its uptrend started from Sept 1st. Top growth stocks, such as BIDU, AAPL, NFLX, CMG, PCLN, ARUN, FFIV etc, have handily beaten the index. As of today, top growth leaders are all holding the line tough, calling for more market appreciation. Well, anything could happen in the market, trend followers only trade based on what they see, not what they think the market will do tomorrow.

One stock which has been lagging badly since 07 market top could re-vindicate itself if the market uptrend continues. Google, being a growth leader for years, seemed to have reclaimed its growth leadership, with top and bottom line growth running hot again. The latest sales are growing at 23% and EPS around 30%.

GOOG is showing up very tightly in its chart, which essentially has traded sideways in a tight range for about 3 weeks after its huge earning induced gap up. If google can break out of the little 3 week tight range in vol, then the next target is its old high of $750.