As I have mentioned, Google probably will dictate Friday Market. It contributed in the Dow decreasing by a triple digit 136 points on Friday. The Fear of China slowdown is back, although the paradox is that Shanghai actually increase for the day. I have time and again mentioned that April might not be that good a month to trade on the upside as ECONOMICAL Reports are not that good. I told in our last article that I am not convinced when Dow increased 200 points on Wed and Thu. Friday proves the point!
Google after releasing its earnings on Thursday night, went down $26 on Friday. What is amazing is that it actually beats its earnings estimate by $0.51, an upside surprise of 6.19%. However what caused this stock to collapse is that Google reported a 12% year-over-year decline in cost-per-clicks.
Btw, Google shows the unpredictability of earnings. Lesson to be learn in Trading! Never hold any stocks through earnings if you are a short term player.
Will Google rise back again? YES! This quarter will have opportunities to play it again. Just that it needs a Rest. Every stocks Rest before they run.
Apple was also dragged down. It was dragged down because BIG MONEY has left the stock. That is the reason that on Thursday, we issued a statement that Apple has been lying dead, and we don't see any heartbeat. On Friday Apple reached a low of $603.
I am using a microscope to scrutinize this stock now. $600 is the STRONG Support, I would pay attention if I see any revival, especially if this stock starts to move more than $10 a single day. Would take a look again if it exceeds $615.
But all in all, my advice in trading is that we should always STUDY the market before stocks. As we have mentioned that Market is not that favorable now, just be prudent and careful in our approach. Remember your stop loss this month!
There is always another time to make back our Money! Move on if you have lost this week. Take a breather, study the market, plan your trades, get back to basics.
THIS IS THE LIFE OF A TRADER!