Monday, February 13, 2006

 

Bubbles and Canaries II

In August 2005 I wrote a post suggesting Google would be a good stock to watch in that it might lead the market. I was right about that but wrong about the direction. Google shot up from 300 to 474 on January 12th. The stock market has been strong all throughout that period.

Now things have reversed and Google is showing signs of a stock that is in trouble. As of this moment Goog is 345 and the trend looks for lower prices. 474 should be a high that holds for awhile. Will Goog keep going lower and will the stock market follow? With a stock market that is still expensive and a real estate market that is weakening I would not bet against it.

More Google news.

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