The Daily Note - Fly Google Air

I posted a Pre-Market Charts and Music on StockTwits yesterday morning that basically stated that if it held above $550 during the day, it was possible that it would hit the top of the gap at $587: $GOOG http://stks.co/bVz. As Google progressed during the day it became more and more evident that the 555 would hold not just the 550. Did "someone" know something? Actually the evidence of leak can be pointed to when it started ramping in the final minutes of the day to $559, but by then, my earnings play strategy was published and ready for execution.

Usually GOOG reports right after the close, so there is no time for even a breath before the reaction occurs. In other words, you better be ready for the play, or sit it out. When deciding for the "long" play entry I felt there would be about a 4-5 point pop before the long execution would kick-in. I also tried to give it enough room to bounce in case it dropped first. But still I expected a more muted reaction on good news than it received. So the take off, despite of previous history, was a pleasant surprise. Like going from 0 to 60 in 10 you could say.

You could also say that I missed by grossly underestimating the targets on this Pre-Close Google Earning's Play setup.



We'll fly away:



So Google's got wings again. I wrote a few months back that I didn't think it would see 700 again. Well maybe now I'll rethink, but not so quick, friends, not so quick. Everything is in cycles and first we'll have to see if this cycle is just the beginning or a quick shot to the moon in the end.

Hope you had a pleasant flight,
B'bye
Anni ;)

Disclosure: We never hold stocks into earnings reports. Always start earnings plays from zero holdings (cash).

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