Google changed their name to Alphabet which has been a goofy transition ever since. Every time someone says Alphabet they then say Google to clarify. Today is Google Earnings Day. The Silicon Valley marching band, with fleece vest uniforms, is coming down main street. If you listen hard you can hear the calliope music.
As always, earnings are a crap-shoot day for any company. Google reports after Monday's closing bell (4/28/19) and will set the tone for the tech sector for this week. The daily chart says down but again, a big positive EPS beat and the price may rock and roll higher. For the Friday near all-time record price high, the chart indicators are all in negative divergence wanting to see a spankdown. There is momentum, however, over the last couple days. Watch to see if the money flow can poke out a new high, or not.
The RSI and stoch's are overbot agreeable to a pullback. The price action has a rising wedge vibe to it which is bearish. Price has violated the upper band so the middle band at 1227, and rising, is on the table. So the daily chart says down but the earnings release will tell the story.
Google is extremely important because during this year's global central banker-induced stock market rally, the FAANG stocks have not placed new record highs except for Alphabet. So a lot is riding on tonight's earnings. Google needs to hit it out of the park to rev up the engines of the other FAANG stocks and carry the broad stock market higher. If Google lays an egg at 4 PM EST today, that will not portend well for the stock prices of other FAANG's and a multi-week top in the stock market may be identified.
On the GOOGL monthly chart, the higher high in price comes with universal negative divergence, an upper band violation, a double-top, or M-top formation, all are bearish. Price also gapped-up last month so that will need filled at some point forward. The monthly chart shows near-term momentum with the RSI and stochastics because of the central banker money-printing this year, so this mo-mo must be respected. Google is cooked and the long-term top (multi-month and multi-year) is in for the stock as long as the chart indicators do not move above the thin red lines in the margin. Anyone long the stock will regret it. If one of the indicators does pop above the thin red line, that will only extend the long-term top a couple months, but if long, it will give you more time to exit.
Keystone is not playing GOOGL right now and tries to stay away from any trade where an earnings release is at hand. Going forward this year, Keystone will look at opportunities of shorting GOOGL. The earnings release this evening, and even the trading action today, will be very interesting. 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.
Note Added 1:35 PM EST: GOOGL is up +0.666% to 1286. Bulls believe in mighty Google and are expecting a big blowout on earnings in 2-1/2 hours. Interestingly, GOOGL is printing three hanging men in a row on the daily chart.
Note Added Tuesday Monring, 4/30/19: Google laid an egg with earnings last evening. In the pre-market, Alphabet is puking -7.8% to 1195.
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