Google Technically Speaking

Google (GOOG) Trades April 11, 2006

2006-04-11T10:46:00.000-07:00

I think the $250k I spent on commissions in my first year of trading has left me a frugile trader. Frugile to the point that I don't throw commission dollars around like I used to. Right or wrong, I have a definative reason for entering into my positions. To date (since the beginning of this blog) I have been uncharacteristically correct in my trading calls. While I never expect to win all of my trades, I do try to target a better than 60% winning percentage. My basic formula is to have my average loser smaller than my average winner and to win over 60% of the time. Without exception, I am closed out of my open position by days end and in 100% cash.

Putting on the short

2006-04-11T10:07:00.000-07:00

Today I will highlight some of the decision making process that went into putting on today's short. Because of yesterdays run-up, I wanted to see at least an hour of action prior to getting into the game. After the first hour of trading, a support level at 413.00 was established with resistance placed at 419. I use a combination of traditional tools provided by Trade-Ideas Real-time Scanning and eSignal Advanced Charting.

After establishing my support and resistance levels, I use eSignal to set a high and low limit alert at the respective levels. Once the security breaks up or down through a level, I confirm the direction of the overall market and place my trade.

When my Trade-Ideas alert window confirms my analysis, I pull the trigger.

Google (GOOG) Trades April 10, 2006

2006-04-10T12:42:00.000-07:00

It's nice when things work as they should. Exit on single GOOG trade at 414.92 (about 40 minutes)

Putting on the position

2006-04-10T12:07:00.000-07:00

Google has been in 4 point range from 406 to 410 all morning. At 12:05 pm PST, GOOG made and attempt to break out of the current intra-day range. I am placing a 1 1/2 point stop at 408.50. Let's see what is in store.

R&R - Well deserved break

2006-04-05T12:28:00.001-07:00

Rest and Relaxation - The Post Ranch Inn, Big Sur, California

Even though my blog recently started, my vacation to the Post Ranch Inn with my wife was well overdue and highly deserved. Today's post will highlight, in my opinion, the greatest getaway in California and a true hidden gem.

The Post Ranch Inn, nestled on the cliffs of Big Sur, California, provides the ultimate romantic getaway for those seeking a luxurious escape. The luxury resort's organic architecture embraces the dramatic beauty of Big Sur's coastline. From here you can explore all that nature has to offer, or take a short drive to the picturesque towns of Monterey and Carmel. Located off Highway One, this Small Luxury Hotel member is a sanctuary suited to all your needs. Rooms offer a rustic elegance with luxury and comfort. Relax by the pools; awaken your senses with a massage, spa treatment, or daily yoga classes. Award winning Sierra Mar restaurant offers an awe- inspiring setting overlooking the Pacific Ocean, perfect for a romantic dinner for two.

Google (GOOG) Trades March 30, 2006

2006-03-30T13:38:00.000-08:00

While there was no definative direction in Google today, there was a 10 point range from which to capitalize on. On 3 round turns, two of my trades were profitable and one was not. I try to always be mindful of one of my favorite trading rules... my losing trades should consistently be smaller than my winning trades.

I have to be honest though, as I was not expecting much to happen today and it was a crap shoot which way GOOG would break out if its mid-day consolidation pattern. I maintained pretty tight stops and was never more than about $400.00 in the red.

Google (GOOG) Trades March 29, 2006

2006-03-29T17:01:00.000-08:00

There are days when stocks trend nicely and there are days when they do not. One thing I have learned when a stock is trending is to not over-trade it and try to out guess the market. Today was such a day with Google. I was alerted to strong activity as soon as the regular market session opened.

As a result, I legged into my first and only position (500 shares) of the day approximately 15 minutes after the open at an average price of $383.22. My Trade-Ideas alert window that solely monitors the activity of Google was lit up green like a Christmas tree confirming my desire to go long.

Typically when I enter a position so early in the day, I make it give me a reason to exit the trade. There was not a support level that was crossed until late in the day at around 12:30pm PST. I exited the trade at 12:41pm PST at a price of $395.21 resulting in a daily profit of $5,992 on an $11.98 move.

Google (GOOG) Trades March 28, 2006

2006-03-28T12:09:00.000-08:00

This is my first blog entry. Google (GOOG) has some important statistics that I follow which my readers should be made aware of.

IMPORTANT TECHNICAL STATISTICS

Volume Weighted Volatility: $2.0146 / 15 minutes (?)
Average Daily Volume: 10,768,353 Shares / Day (?)
200 Day Moving Average: $349.3586 (?)
50 Day Moving Average: $379.5664
20 Day Moving Average: $353.2985
Closed Up for Consecutive Days: 4 (?)

Range Contraction: 1 day (?)
Consolidation Pattern: 2 days (?)
Linear Regression Divergence: 0.654489 (?)
Average True Range: 12.4071

I get this information from http://www.trade-ideas.com/StockInfo/GOOG/GOOGLE_INC_CL_A.html
you can look up any stock but I focus on GOOG.

My target position size is typically no more that $200,000 or approximately 600 shares which I may or may not scale into.

Today, I entered GOOG at around 373.4, the reason I entered the trade was it was making many new highs on my Trade-Ideas window. Since I have been following it I felt that it still has momentum coming from inclusion into the S&P. I held through till about 11:10 Eastern when it made a fast move downward and the rest of the market started getting worse. GOOG does not follow the market usually which is another reason why I like it. When I saw it bounce off of support at 12:10pm I bought again. I like to keep tight stops late in the day and as such closed my position just above 377 resulting in profit of $1,384.00 before commissions of about $40.00.

MY TRADING TOOLS

Trade-Ideas Pro Alerts and Scans

eSignal - Advanced Charting

TradePortal's ProMatrix DMA Trading Application