Thinking Google

Was tempted by action on Google (GOOG) today. Price was down to under 310 at one point. Decided not to buy anyway, was scared by the fact that almost all technical indicators were bearish. In current market, if in doubt, don't buy. I know that Google is cheap under 500, never mind current price. But I don't want to buy when it can go even lower. Looks like we are in one of paradox situations described by Jim Cramer: hedge funds have to sell something to meet redemptions. And they sell what they can, not what they want. Google is one of the most liquid stocks, so they sell it as well. Today's earnings downgrade was just an excuse to sell, come on, target price was lowed to 490, which is 1.5 times higher than current one.

Let's see what tomorrow brings.

Full disclosure: at the time of publication author had a long position in GOOG. Positions can change any time.

Disclaimer: This article is not intended as an investment advice. Every person should make her/his own investment decisions based on all available information and advice from her/his own financial advisor.