Google reported $4.92 for the last quarter, about $1 higher compared to last year's quarter - which is still a great growth story and GOOG is now priced around 17 times earnings, which is moderate for a growth stock. We have a valuable double bottom here with a weekly 9 count and daily 13's, the stock is well supported around the 300 area for the time being and can trade up to 400 with the big rally to 480 again. But actually from a wave perspective, Google needs to trade down to 260. Going forward it will be in the 300 to 500 channel for the next 3-6 months.The market, especially the NDX after testing the recent crash lows, turned around and ended up in a short covering rally. Finally, we made the 50% gains but not as inside day moves. But I doubt we can call it the lows yet even the 11 count for the VIX disappeared - it's just that people are eager to catch the double low and, in this wild volatility, no one wants to be caught on the wrong side. So far, we have a regular counterwave today and since we are below weekly Bollingers again this week, we might even see a little higher prices early next week from today's close before another selling attempt will come up. The Google and IBM earnings helped today and we rose against bad economic data. I assume tomorrow might be on the weaker side as avoiding risk again or pretty much around 950 SPX. That's the value area for options.
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