GOOG was a nice short but due to the low volume I was unable to “load up” and really make the short worth my while. However, the price rollover and breakdown, with the bear market starting, was a near-perfect short setup price wise. The stock subsequently fell 37% from my short to the ultimate low of the downtrend and even if you held until the gap higher on strong volume over the 50 DMA, you still walked away with a 17% gain. Even though it would have been impossible to hold, for me, the stock is now down 60% from my short to the low in November. This short was taken during a time that everyone was saying to go long RIMM, AAPL, GOOG, GRMN, and BIDU. I said that the tech “horseman” were all shorts and even published a column about their topping patterns on Realmoney.com. When the bear is done with AAPL and RIMM, we will go over those shorts. GRMN has already been posted and my BIDU short was botched completely.
the short:
the low of the move:
Turnaround Tuesday lives up to its name as the Dow leads the Market higher
Void of economic releases the market did get showered with more than $3 billion in asset purchases from the Federal Reserve. A hiccup in the morning was quickly support as the Federal Reserve Open Market Operations flooded the market with fresh new cash. Over Europe the DAX closed in the green for the 11th straight [...]