Am I reading GOOG right?

G

Grebnehtor

I am a beginner to all of this and paper trading right now, so simply looking for advice, constructive criticism and so on.

GOOG today is trading around $547 with a big red candle today. Next support doesn't look like it comes in until the $532ish range. The ADX is showing a strong trend starting and the MACD fell off the deep end. It's well below it's EMA 20 and 50 with the EMA 200 at the $500 mark. My biggest concern is that the RSI is showing it's oversold at this point. Do we see a bounce? I think it may have 1 or 2 more solid red days before we get that bounce.

If I were trading, now would be a good time to get into some GOOG puts?

Trying to figure out how to post my chart.
 
dont count on 500 acting as support, all the shareholders will see unrealized profits vanishing and sell this down right to 350, thats my target
 
Oh the pain of long term capital gains vs short term capital gains - what a time for market to turn. Most people didnt buy until June-August for this rally.
 
So if I buy a single OTM put contract for $7.00 ($700) thinking the stock is about to tank and it does and my put contact is then worth $50 ($5000) I net $4,300? Seems like everyone would be playing puts with a chart setup like GOOGs.

I maybe completely wrong, but thats why I'm posting this to learn.
 
OP, Just my 2 cents worth, but you need to drop all the indicators. You have a good uptrend line break to the downside and a penetaration of support. Wait for a pullback to the 82 area and place a sell below it. Aint rocket surgery.
 
With a broken support though, does it climb back up for a day or does it tank? I don't see it getting back that high even though that was a support area.
 
No ones knows, at least I don't. All I know is to watch to see if it has flipped, and provides an entry. Predicting the outcome is a losing proposition that will drive you insannnnneee.
 
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