Nate's post on Google (GOOG) mirrors my thoughts on the market. Look to the weekly charts and you can see that we are in a confirmed downtrend. The rally that took place recently is nothing more than a pullback within a downtrend. Looking back to my post on February 12, Google has now rallied back to resistance, creating a textbook shorting opportunity.
Corey at afraidtotrade.com has some great analysis on Google. The key takeaway from his post is that consolidation precedes expansion. It is clear that Google is consolidating, the question is whether the expansion will be upward or downward. My analysis from February 12th remains the same. We have bounced to resistance on Google and the next move is likely lower. I own Google puts.
Joel Stahl
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