GOOG and its 200dma

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GOOG has recovered nicely over its 200dma. After breaking down from its 50dma volume declined with the sell off. Good news for bulls on GOOG…the breakout from its 50dma was on better than 21 mil shares…almost double its 3 mo vol average. This only means bullish for GOOG.

GOOG will meet with Analysts on Thursday. I expect little to come of this. GOOG is a smart company and is taking a page out of AAPL’s book…Do not go over board on estimates/guidance. If you recall, AAPL came out with earnings sometime in August, beat estimates but its guidance wasn’t as good as analyst would have liked…bam! Stock is hammered in after hours trading…stock was near 40…now its trading around $70. By no means am I predicting GOOG to go to $700 but merely pointing out that although GOOG may have not impressed the analysts in its guidance…but only to point out analysts are human….emotion…and like a crowd they are irrational and believe they no more than the market! There are exceptions but they are so few and far between!