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Locked Profit on Google – 20 Percent for 5-Days Trading



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Jun 22 2007
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Boy, have you seen how Google Inc.’s (Nasdaq: GOOG, stock) stock performs today? Unbelievable, considering the new resistance of $525 was established about two-weeks ago only. It was on June-7th, 2007 when the highest of $526.50 per shares was recorded. What prompted me to enter the position (GOOG Aug $510 Call) on June-18th, 2007 was when the price-action (price and volume) triggered the “Buy” signal to me. If you happened to be monitoring Google on that day, you would know what I meant. Referring to the 9-months chart, you can see four important levels – $461, $475, $505 and $525. All of them have significant meaning during trading.

Looking at the chart, $505 resistance seems to have been converted into support (I’ve no idea how strong is this support though). Today, the stock tested the $524 when the stock zoomed into the territory since opening bell. So, when the stock crossed the $524 and trying to tease the $525 level, I’ve decided to ring the register and take profit. As of the writing time, 12:00pm EST, Google is still trying to breach $525 level numerous times. I’ve to admit this is too much for me to take, I can’t take it if the share decides to make a sudden U-turn at anytime the stock likes to.
Furthermore Dow Jones, Nasdaq and S&P 500 all are in red – couple with the fact that today is Friday, I’m going to have peaceful weekend and not to worry about the risks over the next two days if I sell today. I’m happy with the profit and money made, though not much in terms of percentage. It’s a mere 20% but it’s only for 5-days of trading, so I’m not feeling greedy *grin*.
In actual fact, you can roughly estimate the stock’s pattern for the day with the stock price’s indicator before the opening bell and the first 45-minutes as these are some of the factors which will determine the direction of the stock for the whole trading day, unless there’re sudden bomb-shells dropped which can change the entire course such as a war or instability in sensitive countries. Would I kick myself if Google continues the uptrend and breaches $525 today? Certainly not because I believe there’s always another trading or investing opportunity tomorrow. So, you got to learn to let go if the market is not on your side, don’t chase the stock. Having said so, should you consider shorting Google now it’s having difficulty crossing the $525 bar? What say you?


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