CHESSNOID

I love to use Google everyday to do some type of search and catch up on my latest news. Everyone who knows what the internet is knows what Google is. This blog is fortunate enough to even have a Google Page Rank. Since last year, I wanted to buy Google stock when it came down from its all time high of $747 and dipped to $640 a share. That is almost like getting a 20% discount. At that time I was really wondering if it was a good buy or not. I have posted about Google stock on and off since then.

There is no doubt in my mind it is a great company and will be around for a long time. Today, the stock closed down another $19.73 a share to close at $413.62. This is a biggest discount since hitting its all time high. I would love to buy this stock one day when I think the trend flattens out. I read a few forums about this stock and noticed when some readers trying to be objective point out fundamentals or chart patterns, they are attacked by Google lovers who just say those people are simply wrong, don’t know what they are talking about, or they just plain suck. You would of thought reading this stuff it was a political event. So much passion and loyalty to Google as if it was a democrat or republican nominee.

I am guessing these people own the stock already or are employees. This stock will eventually bounce back, but I don’t think in this tough economy Google has proven to be recession proof like so many analysts predicted 4-6 months ago. We are not quite at the 50% off sale mark down, but we sure are close to that $374 mark.

If Google Stock dips below that psychological $400 mark, I think it will make many more investors nervous and force them to cut their losses or lock in their profits depending when they bought it. I have no idea when the bottom will come and for all I know, it could break $1000 a share a year from now. I do know the overall stock market is trending downward and this would be a riskier time to buy. The safe bet will be to wait until the technical charts flatten out for an extended period of time.

Here are some Google Stock charts from stockcharts.com that I like to use. This one is a little simpler to understand and spells out price objectives.