A Quick Daily Look At Google And Intel

With Google (GOOG) announcing earnings that ‘disappointed’ Thursday night and Intel’s (INTC) earnings earlier in the week surprised, let’s take a quick look as of July 17th at these two market moving stocks.

First, with Google (GOOG):

Google, like Apple (AAPL), has been in a very strong uptrend off the early March lows.  With only one pullback before the June highs, price rose almost without pausing.

The run-up into the June high was tremendously powerful (that’s why people trade Google - for the action and volatility) which terminated in a doji that gapped up into an exhaustion/reversal bar just above $440.

We had an “abc” move down off those highs into what appears to have formed a “double top” at prior resistance with a slight negative momentum divergence.

Notice how volume spiked Thursday as traders/investors took positions in expectation of blow-away profits (similar perhaps to Intel).  Playing the ‘earnings game’ can be very risky, as expectations were not met by Google’s latest announcement.  We are now in a ‘pullback/retracement’ mode.

Next, on to Intel (INTC):

As opposed to Google, expectations for Intel (INTC) were  lower, and so better than expected numbers caused the stock to surge, driving the S&P minis up nine points after Tuesday’s close (which preceded a trend day on Wednesday… though strangely enough Intel formed a doji on Wednesday and a ‘trend day’ on Thursday).

Volume surged to a new 2009 high as did price and the 3/10 momentum oscillator - all signs of fresh and enduring momentum that should lead to higher prices in the established up-trend (though expect a pullback/retracement instead of a parabolic rally - the new momentum high indicates a short-term overbought reading, as do all oscillators).

So it’s a different picture as painted by two market leaders.

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