Although we use Apple as our main bellwether, Google deserves attention as well because it’s a ‘market stock’ that tends to accurately reflect the prevailing mood on Wall Street. Right now GOOG is stalled at a minor midpoint resistance at 681.50 (see inset), but if it closes above that Hidden Pivot for two consecutive days, look for a follow-through straightaway to the 703.75 ‘D’ target of the pattern shown. If the Dow were to follow suit, it would imply a 3% rally of about 400 points. ______ UPDATE (September 10, 2:23 a.m. EDT): Buyers impaled our target on Friday, implying an easy move to the next, at 716.43. As you can see for yourself in the refreshed chart I’ve provided, the target looks appealing as a short, and so I’ll suggest doing so — 200 shares, stop 716.75, good till canceled._______ UPDATE (September 19, 12:39 a.m. EDT): DaBoyz used the staged weakness of a bear-trap opening to set up a $10 short-squeeze rally to 716.74 — 31 cents from the target flagged above — in the first 30 minutes of the session. After scuddling sideways for the next five hours, the stock took off again, leaving shorts on the ropes at the bell. Minimum predicted upside in the early going on Wednesday: 723.11. Shorts should risk no more than 0.20 on trades initiated at that price. _______ UPDATE (6:26 p.m. EDT): Yesterday’s short-squeeze rally blew past 723.48, implying more upside over the very near-term to at least 734.45. As always, an easy move through that target, a Hidden Pivot, would imply that bulls have yet more firepower to deploy. _______ UPDATE (September 23, 11:41 p.m. EDT): Friday’s rally hit 734.92, fulfilling our target. That resistance is not exactly chopped liver, so if GOOG blows past it today, infer that the stock is fixing to savage shorts. ______ UPDATE (September 24, 10:07 p.m.): A Hidden Pivot with some stopping power lies at 757.68, so if you’ve been fortunate enough to be long, consider an exit or covered writes. Camouflage traders who are comfortable on the double-diamond slopes can try shorting there with the tightest stop-loss one can abide. ________ UPDATE (September 25, 11:23 a.m. EDT): Having shredded the 734.45 pivot this morning, Google is in a parabolic blowoff. A rally this steep is manifestly unsustainable, but it would be pointless for a trader to try and resist it. From a Hidden Pivot standpoint, the next resistance lies at 770.28. We should see whether it works soon enough, but at this point traders should view it as just a curiosity, a Burma Shave sign along the heavenly highway.
