I went long today in Google (GOOG) despite the overall market being heavily bearish. The reasons were simple – the market gapped down significantly and usually after the first hour or so of trading there is a period of extended sideways trading to a possible bounce in the afternoon. Secondly, Google was testing the 200-day moving average, which bounced immediately off of the last two times it was tested.
However, on multiple time frames the Google Trade looked solid which solidified my reasoning to go long.
Daily: Perfect test of the 200-day Moving average and bounced just like I expected.
