Google’s earnings are a bellwether

If you had to watch only one stock this earnings season, I think it should be Alphabet.

I remember when Cisco Systems was the quarterly earnings bellwether?

They (Google) report earnings on February 1st, 2022.

To coincide with today’s post about picking a bottom in the Nasdaq, in order to keep its current bullish trend intact, GOOGL needs to hold the support line on the chart below, which is around the $2,450 mark.

In other news, Microsoft reported earnings after today’s close and we’ll see how their price action plays out, while Apple reports earnings on January 27th.

All three of these stocks are on or above similar support lines. (MSFT’s is right on the edge).

Meanwhile, the other three of the “FAANGM’s gang, being Netflix, Amazon and Facebook have already broken below their corresponding (or sympathetic) support lines.

Incidentally, Tesla reports quarterly earning on January 26th (U.S. time) and their stock will be interesting to watch too. Not because I consider them anywhere near a bellwether, but rather they are a proxy for cult and sentiment.

To put it simply, if Alphabet (Google) breaks below that support line on a weekly closing basis, then they may be the last straw that broke the camel’s back……….

thus my the probability of my Nasdaq low story is de-bunked and I’ll revise the next wave and targets at lower levels.

January 26, 2022

by Rob Zdravevski

rob@karriasset.com.au