Google Flops on Friday After Move Higher
The market for Google has been interesting on Friday, as we continue to see a lot of volatility, mainly driven by thin markets. This will continue to be an issue for the next few sessions.
Alphabet Inc. (GOOG)
The market for Google caught my attention during the trading session on Friday because it shot straight up in the air and then broke back down. Now, we have to keep things in perspective here. Volume is extraordinarily thin, so it probably only takes a huge block order or two to come, maybe taking profit out of the market or putting a position on, or who knows what, to get things moving.
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After all, even though Friday was a "normal" trading session with shortened hours, the reality is that traders are probably not going to be too overly concerned about the stock market until Monday at the earliest.
A Buy-On-The-Dip Setup
Furthermore, you have to keep in mind that the number of jobs will be out at the end of next week, at least assuming that the government is open, and that, of course, will have some type of influence on the overall markets in general.
I do like this as a particular setup for a buy-on-the-dip type of situation. After all, Google has been a big winner for quite some time. As we just flutter around here, I think you have to look at dips as opportunities.
The 50-day EMA is at the $296 area and rising, and then the $290 level underneath there offers plenty of support. Google is a bellwether for the entire tech sector, so of course, we have to pay attention to that. But I think overall, this is a market that will continue to attract traders going forward, and therefore, I look at each dip as a potential opportunity to pick up cheap stocks.
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