Alphabet releases earnings last evening but traders are yearning for more. GOOGL trades down -1.3% to 1272 in the pre-market. The stock initially fell below 1250 on the earnings release. Alphabet is spending money like drunken sailors. GOOGL popped +2% in the Monday trade to a record high at 1299.24 a whisker from 1.3K. GOOGL pierces the upper standard deviation band so the middle band at 1194, and rising, is on the table. The chart is on the weekly basis so the last candlestick on the right currently only reflects the Monday trade. The candlestick will continue to contort depending on how the week goes.
The 1272 price is at the level where GOOGL gapped-up to yesterday so it is now deciding if it wants to head lower to 1266-ish.The red lines show universal negative divergence across all chart indicators. The stoch's and money flow are coming off overbot levels agreeable to softness ahead. The green lines show near-term momentum mainly due to the gap-up Monday joy. This may create a jog move for a couple weeks, down one week, up the next, so the top may be a couple weeks out.
The ADX purple box shows that the uptrend was strong in late 2017 and early 2018 but that is when it petered out and price has been choppy sideways ever since. Alphabet and Apple have enjoyed gains in recent weeks, with parabolic moves in price, as traders playing high-flying hot stocks moved money from the other FAANG's; Facebook, Amazon and Netflix. The ADX down at 13 indicates that this big move higher in price is NOT a strong trend higher.
The parabolic jump in price creates the positive Aroon cross but comically, the green line pegs one hundo, the maximum. The Aroon red line is down at 16 so it has nowhere to go but up while the green line definitely has nowhere to go but down both indications are negative for price.
Look at the selling volumes over the last three months. See how price spiked and sucked in Joe Retail during one week, then it was followed by multiple sell weeks. That is the smart money distributing shares to Johnny and Jane Bagholder.
On the GOOGL monthly chart, Alphabet price tags the upper standard deviation band so the middle band at 1146 is on the table for the months ahead. The chart indicators are all in neggie d over the last year or two signaling a long-term top at hand on the monthly basis. The recent parabolic move in price, however, creates near-term momentum, so, like AAPL, GOOGL may peak out and roll over after the broad market has already started falling. All this is expected before year-end or by January. Of course, a new QE program from the Fed or other global central banker shananigans can always save the day and extend the market joy. The central bankers have created a decade-plus rally already the longest in stock market history.
If you are in GOOGL, cash out and move on. There is nothing to invest in there. Google, er Alphabet, has run its course. You could leave a lot of that dough sit in cash for a while. AAPL is the Superbowl of earnings this week and will either create stock market euphoric joy, or immense sorrow. GOOGL is currently trading down 19, -1.5%, to 1270 slipping into that blue gap shown in the chart above so price may want to touch 1266-ish to figure out what is going on. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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