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Google Makes New 52-high 9.18.2012

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  Google is currently trading at $715, up $5.02 or +. 70%, just slightly off the newly established high, but up $2 from its previous 52-week high of $713 established yesterday.  The stock has made an incredible move this year, up 9.9% year-to-date as of yesterday’s close.  Google is up $158.48 or  +28.47% from its 2012 low of $556.52, where it established a bottom, on June 14.

 Every time the stock kissed the $556-558 area, it bounced higher.  The bears failed to penetrate the $556.52 low several times in the month of June, creating a textbook double bottom, resembling a ‘W’.  This ultra-bullish indicator gave traders the confidence to bid the stock back up 50 points to $600 a share on July 5th.  However, the stock did pullback briefly to $562, but failed to touch the $556 low, validating the June 14 bottom. 

The stock then started a new trend of consolidating sideways with an upward biased before making an explosive move higher. 

The stock shot up 26 points from $583 to $609 on July 19, after trading sideways.  Google moved sideways again, trading with little direction for a week before making another leg higher. 

The stock shot up 20 points to $634 from $614 on July 27.  The stock continued to exhibit similar behavior throughout the month of August, consolidating sideways before having another strong move higher, advancing 16 points to $659 from $643 on August 13. 

The stock moved gradually higher for the second half of August, before shooting up 12 points on September 6, to close at $694 from $682.  With the stock making a new 52-week high under the radar of most traders, I expect an upcoming consolidation period before making the next leg higher. 

The stock is clearly in an uptrend.  The bulls are looking to carry the stock higher. 

The company is set to report earnings October 10, 2012.  Google reported 2nd quarter 2012 earnings of USD 10.12 per share on 7/19/12.  This beat the consensus of USD 10.04 by USD 0.08 of the 29 analysts covering this company causing the 26 point move mentioned above. 

Market is clearly bullish on Google’s growth opportunities, specifically in mobile revenues, which have been a big driver of growth for the company. 

Ciro J. Lama is currently an undergraduate studying Finance at the Zicklin School of Business – Baruch College

Website: CantalinoAssetManagement.com

Follow me on Twitter:  @TraderCantalino

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Morning Rage 9.17.2012

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I expect the performance of US indices this week to have a more honest QE3 reaction after exploding upward last week. Indices futures for the Dow, S&P, and Nasdaq are all down 21.00, 3.25 and 4.25 points respectively.  Metals futures are all down slightly before the market opens with Platinum and Palladium losing the most, 16.10 and 11.70 respectively. Crude futures are down 0.20%.

One of my favorite ETFs to follow in the aftermath of QE3 announcements is SPDR Gold Trust (GLD | $171.8). GLD is down $0.35 in after hours trading after taking a $0.49 gain on Friday. The Oct ATM straddle is priced around $7.00 about a 4% expected move. After the QE3 announcement, a higher probability of currency manipulations around the world will have investors continue to invest in gold.

Apple stock (AAPL | $691.28) is up 2.68 points in pre-market trading to $693.99. Apple set a presale order record with the new iPhone 5. I expect the stock will jump over $700 before the end of the month but, due to the volatility over the past week or so, it may jump back and forth over the $700 line.

Google stock (GOOG | 709.68) was up three and a half points on Friday, only slightly short of its all time high. The stock has hit a resistance point below $715.00. 

Alex Kalish has a master’s in economics from Suffolk U.

Questions, comments and suggestions welcome: alexk@keeneonthemarket.com

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Halftime Report 9.13.2012

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Oil and Gold are both up 6.00 and 0.68, to 1,778 and 98.99 respectively. Platinum futures are up 31.80 and are quickly catching gold. The EUR/USD exchange rate gained 1.13% up a penny and a half to 1.3136 euros per dollar.  Strangely, the US dollar is gaining value against the Japanese Yen, up about $0.77.

Analogic Corporation (ALOG + 13.67%) is a technology company that designs and manufactures advanced medical imaging and security systems. ALOG hit a new high today of 78.73, up about 9.50 points. Shares exploded today after its quarterly results and guidance topped expectations. Analysts expected a EPS of $0.71, a surprised of $0.25 per share as earnings were $0.96.

Bank of America (BAC | + 1.60%) had a second day of huge volume. The stock has been downgraded by at least 5 analysts, yet it continues to creep higher. 226.6 million shares were traded today already.

Google Inc. (GOOG| +$6.16) jumped up almost 6 points in the first half to 712.20. Google has been extremely volatile this week. On Wednesday it was down around 685.00 and gained almost 18.00 points yesterday.

Apple Inc. (AAPL | 1.99%) is up an astounding 13.61 points. Sitting at 696.56, AAPL has hit a new high, again. The iPhone 5 pre-orders were sold out within an hour this morning which may have drove all of the bears away from the stock, after some questioned the value of upgrading.

US economic news released today includes the CPI, retail sales, and industrial production. All reports are released on a monthly basis. Production is down 1.2% overall, with manufacturing losing 0.7%. Retail sales grew 0.9% beating last months 0.8% growth. Finally, CPI grew by 0.6%. Food and Energy prices accounted for 0.5% of this months change, however, year-over-year change in CPI were all energy and food at 1.7%.

Alex Kalish has a master’s degree in economics from Suffolk University.

Questions, comments, and suggestions are welcome: alexk@keeneonthemarket.com.

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