A Brief Look at GOOG (Google)

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Google reports earnings after the close today. So I just wanted to put a little info up on GOOG because like AAPL I would think this is a sell time for GOOG. The chart above shows GOOG has formed a bearish weekly reversal candlestick at prior resistance and has closed back under that level. Also a bearish MACD weekly cross has formed, which may mean a much larger pause of this uptrend. If you pull up a daily chart, the recent decline has shown a large increase in volume. Often that is said to be bearish, but I don't know that it is really. But it does seem to me that GOOG will either be continuing to form a base or possible entering a larger decline.

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This chart shows the Put/Call open interest ratio for the next 3 months of options. This shows that the put open interest ratio has fallen sharply recently and is at a yearly low. So this may be overly optimistic here. There is a large amount of front month out of the money call open interest compared to puts, so it seems that the bet is that GOOG will move up on earnings. Don't read too much into this though.

Other relevant info is the short interest ratio (days to cover is 2.8). That is not a large amount but enough to give a little add on buying if it moves up on earnings. Over the course of weeks or months, though that is not significant short interest to fuel much buying. And it probably wouldn't really trigger a short-covering rally unless GOOG makes a new rally high.

The analysts rating GOOG a buy are 32 to 0 sell ratings. There are 5 holds. So there is not significant prospect of analysts upgrades boosting prices any time soon here.

So my take is that GOOG is overbought on a weekly time frame and it doesn't have much fuel for further forced buying from the options or short interest data. Also, technically it doesn't look like it has bottomed or consolidated on a daily time frame yet. So, I wouldn't count on GOOG taking off on this earnings period.