Steal Money from Google (NASDAQ:GOOG)
Mar 13th, 2009 | By Charles Delvalle | Category: Chart of the DayI don’t say this to brag but, damn, my readers have been making some money lately!
On February 4, I first warned that Google was running out of steam and about to drop.
Then on February 9 I said this.
Google might go up another week – but not pass its trend line resistance at $400 (if it passed $400, I would bail out of my short). It might try to get above, but should fail and drop to $275 or less by summer – a 31% fall.
A month later Google dropped to $289. You would’ve made a healthy 23% gain.
So I hope you pay attention to what I say next about Google Inc. (NASDAQ:GOOG).
What I want to show you is a little timing trick that relies on the 20- and 50-day moving averages.
Every time the 20-day crosses under the 50-day, you sell shares short. And when the 20-day rises above the 50-day, you buy shares outright.
By following this strategy, you would’ve made 43% when the first bearish cross happened in late June of 2008 until the beginning of this year.
Later, when a bullish cross happened (in early January) you would’ve recently sold out of that position roughly flat.
But today, another short-sale signal was triggered by this technique.
Here’s your suggested play: Sell Google short and use a point above the moving averages (like $340) as your stop loss to protect yourself.
If Google takes another leg down (as this very basic system shows it should), we could see Google shares trade for $250 per share.
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Charles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth".
