GOOG – Google (Last:389.05)

We continue to hold a modest short position, a September 270 put purchased a while back for 8.00. The position is no longer tied to any technical rationale, but rather to my gut feeling that the rally in this stock since we acquired the put has been seriously misguided (much like the rally in Microsoft, a stock in which we also hold a small short position).  Yesterday’s $12 decline was therefore a breath of fresh air, but it would become even more telling if the selling were to take Gluggle below a Hidden Pivot support at 385.12 today. That would be the first sign since early March that traders understand that even this companywill have to cope with hard times in the months (years?) ahead. Incidentally, I can personally feel Google’s pain because the ads they have festooned like Burma Shave signs all over the Rick’s Picks web site each day have been producing about half the revenues of just six months ago. _______ UPDATE (10:10 a.m. EDT):  The so-far 42-cent overshoot of the target should NOT be considered sufficient to have invalidated it. For whatever reason, this stocks tends to need a bit more room than most others.

Tagged as: Forecast, GOOG, Google