Kelvin’s blog has pointed out that GOOG has a 6 monthly seasonal cycle. Now it is the 6 months low, I have plotted 4 year weekly chart, it just touched the low this week. On the daily chart, candlestick of Morningstar signal cut up 2 days ago, now is cutting up 20SMA, confirmed by stochastic and RSI, also soon DI+ cut up DI-as well. You know GOOG is expensive, what is the strategy ?
[Further update on 11 Mar]: From the price move on 8 & Mar 2007, GOOG is not strong, therefore I feel Bull Call Debit Spread of Apr $480/$490 Call at about $3.1 debit might not be a good choice. The following can be considered based on GOOG closed at $453 on 9 Mar :
1) Bull Put Credit Spread of Apr $430/$420 Put at $2.2 credit or better
2) Bull Put Credit Spread of Jun09 $520/$510 Put at $6.30 credit or better.
Any one has any comment or other strategy ?
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How about the April 430/420 Bull Put for $2.00 credit?
This is a vertical credit spread with the sell leg below the trend line, yes I like it.
Thank you.