Google

Here is a daily chart of Google. I last commented on GOOG here.

I had been thinking in terms of a 344 downside target for GOOG. But over the last couple of days the stock has outperformed the market dramatically. Note that it is now visibly higher than the 387 high of June 2, the day that the S&P's traded as high as 1294. On the other hand the S&P's are still 20 points below their corresponding high.

This is yet another example of "the dog that didn't bark principle". Whenever an individual stock starts showing a pattern of lows and highs that is remarkably different that the pattern of the averages it is time to reassess your market views.

In the case of GOOG I now think that the reaction low was made at the 360 level and that it will move into the 450-500 zone this summer. Meantime the 410 level is my initial upside target which may be followed by a break of 20 points or so.