Wednesday, December 5, 2012

Google pulled back yesterday after achieving a high at 705.89 that easily exceeded the 700.00 target I'd advertised when the stock was $30 lower.  This was a precise Hidden Pivot, and so the overshoot will have bullish implications going forward.  The chart shows how things might play out in order to generate a bullish 'x' entry signal.  If and when it comes -- and this seems very likely, given the decisive nature of the impulse leg -- 'camo' traders will want to be looking for their entry opportunity on the 3-minute chart.  ______ UPDATE (December 10, 2:17 a.m. EST):  The trade set-up detailed earlier has produced an entry signal at 694.30 (see refreshed chart), but the subsequent 12-point decline makes clear why we should always look for opportunities on the one-minute chart rather than the "daily" when trading a $700 stock. GOOG will remain on a bull signal nonetheless, unless the point 'C' low at 682.33 is exceeded to the downside. Please note, however, that the 'external' peak one might have used to get long via camouflage on Friday has been spent. It lies at 684.52 (3:08 p.m. EST), and the A-B impulse leg that exceeded it produced a winning trade with two single-bar coordinates. _______ UPDATE (December 11, 2:26 a.m. EST):  With no 'camo' handholds to be found even on the 15-minute chart, we'll sit back and enjoy the show for the moment.  However, if GOOG falls hard today, the 673.00 downside target shown in the refreshed chart can serve as a minimum price objective as well as a place to attempt bottom-fishing with a tight stop or 'camouflage'.