A Quick Daily Look at Google GOOG and Intel INTC
Courtesy of Corey at Afraid to Trade
With Google (GOOG) announcing earnings that ‘disappointed’ Thursday night and Intel’s (INTC) earnings earlier in the week surprised, let’s take a quick look as of July 17th at these two market moving stocks.
First, with Google (GOOG):
Google, like Apple (AAPL), has been in a very strong uptrend off the early March lows. With only one pullback before the June highs, price rose almost without pausing.
The run-up into the June high was tremendously powerful (that’s why people trade Google – for the action and volatility) which terminated in a doji that gapped up into an exhaustion/reversal bar just above $440.
We had an “abc” move down off those highs into what appears to have formed a “double top” at prior resistance with a slight negative momentum divergence.
Notice how volume spiked Thursday as traders/investors took positions in expectation of blow-away profits (similar perhaps to Intel). Playing the ‘earnings game’ can be very risky, as expectations were not met by Google’s latest announcement. We are now in a ‘pullback/retracement’ mode.
Next, on to Intel (INTC):
As opposed to Google, expectations for Intel (INTC) were lower, and so better than expected numbers caused the stock to surge, driving the S&P minis up nine points after Tuesday’s close (which preceded a trend day on Wednesday… though strangely enough Intel formed a doji on Wednesday and a ‘trend day’ on Thursday).
Volume surged to a new 2009 high as did price and the 3/10 momentum oscillator – all signs of fresh and enduring momentum that should lead to higher prices in the established up-trend (though expect a pullback/retracement instead of a parabolic rally – the new momentum high indicates a short-term overbought reading, as do all oscillators).
So it’s a different picture as painted by two market leaders.
Corey Rosenbloom, CMT
Afraid to Trade.com
Photo: A Winning Miss, Buxom woman rolling dice, copyrighted by Art Photo Co., Grand Rapids, Mich, Wikipedia.
