We’ve been favorably disposed to GOOG dating back to early September as this post suggests here.
Because we recently had a victory lap post reminding readers that this call had heretofore been the right one, it’s only fair that we point out today’s ~10% loss in the stock as well.
With today’s losses, all of the gains since our original post have been eliminated.
That said, after breaking out from a slight ascending wedge / triangle pattern formed by lines (1) and (2) in August/September and rocketing in a straight shot higher, today’s decline has merely resulted in the stock testing former resistance line (1) at the point of break-out, as new support.
Tests of break-out zones are quite normal.
As such, despite today’s losses, we believe nothing with respect to our original post has changed noticeably, especially with respect to the GOOG vs. AAPL comparison.
We’d like to see line (1) support hold for that thesis to remain intact.
Such support stands ~3%-4% lower at ~$660-$670.
As a final reminder, GOOG has only had one negative October out of eight in its entire trading history.
GOOG closed September at $755.