Rob's Lobs

[Rob]

The all-time intraday high on the DOW is 11,750.28.

It just came 0.68 shy of hitting it a few minutes ago.

[billyjoe]

Rob,
I think he changed defininitions as each edition came out. Anyway, if the right side of the cup is lower , when it is filled it might only be half filled , thus resulting in half a breakout.

------------billyjoe

[New-born baby]

Okay, I've got my copy of How to Make Money In Stocks, by William J. O'Neil, and here's a quote from para. 2 on p. 164:

When handles do occur, they should form in the upper half of the overall base structure, as measured from absolute peak to the low of the cup. This should be above the stock's 200-day moving average price. Handles forming in the lower half of the base or completely below the stock's 200-day line are weak, failure-prone price structures.

Yes, that 200 day line is important, and of course, GOOG is above it now.

[Rob]

Okay, I've got my copy of How to Make Money In Stocks, by William J. O'Neil, and here's a quote from para. 2 on p. 164:

When handles do occur, they should form in the upper half of the overall base structure, as measured from absolute peak to the low of the cup. This should be above the stock's 200-day moving average price. Handles forming in the lower half of the base or completely below the stock's 200-day line are weak, failure-prone price structures.

[Rob]

If you like, I can take a can of Karel's Disinfecting Deodorant and delete the post. That might cut the stench some

Thanks, NBB, no need for that. I was just pokin' fun at you.

[New-born baby]

How dare ye stinkify my fine thread with sub-standard graphics?

If you like, I can take a can of Karel's Disinfecting Deodorant and delete the post. That might cut the stench some

[IIC]

I think 3% is OK...but there was an article in Monday's IBD that said the increase should be at least 20% up to the left side high...GOOG 's was not that much from 370.

But you could also say it is a double bottom that is failing.

Of course you could make up the rules as you go along...as taught by CANSLIM

[Rob]

I don't think you're making anything up, BillyJoe, but my memory differs from yours regarding the right side of a cup. My recollection is that it is typically slightly lower, within a certain percentage (5%?) according to O'Neil.

[billyjoe]

Rob,
Draw a line from side to side. If it's not exactly even , that can be called a flawed base and will be if the breakout fails. I'm not making this up.

------------billyjoe

[Rob]

William O'Neil would say the right side of the cup is too low.

It's less than 3% lower. What's O'Neil's criterion?

[Rob]

How dare ye stinkify my fine thread with sub-standard graphics?

. . . when does GooG report?

Oct. 19, after the close, one day prior to expiry. The estimate is $2.42, which, if it equals the actual earnings, will be an 83% year-over-year increase and make the trailing 12-month figure $7.92 and a mere 50.7 P/E for this powerhouse, based on yesterday's closing price.

Sorry for the handysnap; its just too easy.

Not unlike calculating the value of a company just by looking at a chart.

[billyjoe]

Rob,
William O'Neil would say the right side of the cup is too low. If it drops that explains it, if not, you're right. I love TA.

--------------billyjoe

[New-born baby]

Google

[URL=http://imageshack.us][IMG]

Rob,
Yeah, from July thru today does seem to form a cup with handle on the daily. That's a bullish signal. Goog also has heavy support at the $375 thru the $400 levels. What troubles me about it all is the conflicting bullish signal with the bearish signals. For example, Goog has had a bearish 50/200 day ma cross in early August, and what usually happens (from my observation), is that a stock will rally above that cross, and then sink below the 200 day. If GooG falls below $394.66, that's pretty bearish for the stock. Then other troubling issue is the symmetrical triangle GooG is forming right now. It hasn't broken out either way; but when it does it signals a HUGE, MM sized move of $150 per share! Conservative traders will wait for the breakout to make sure they are right about the direction. Lastly GOOG is either a great buy here (it has heavy support at $398.94), or a great short here. In other words, GOOG is right on the knife edge of a perfect entry long or short, depending which was the triangle breaks. (I should mention that what usually happens is that a stock will break support to the south, and then retest the support level before preceding south. That heavy support line is $398.94).

Sorry for the handysnap; its just too easy. And a question: when does GooG report?

[Rob]

GOOG: Cup w/ Handle

[Rob]

Spike, I've composed two different replies to your note, neither of which I chose to post, because I don't want to start another fight. Bottom line: if you're so convinced IMCL is going down, just let me know at what price you're shorting it.