Alphabet Inc. (NASDAQ:GOOG) has had a spate of bad publicity

Alphabet Inc. (NASDAQ:GOOG) has had a spate of bad publicity

Alphabet Inc. (NASDAQ:GOOG) has had a spate of bad publicity

The Big Tech backlash has just started, but it’s picking up speed.

For the last two years, Facebook has been caught up in scandal after scandal, particularly about the use of its 2.4 billion users’ private data and providing a forum for hate speech and political skullduggery. The sale of users’ data is so central to Facebook’s business model the problem is very difficult to fix.

Alphabet has had a spate of bad publicity — over privacy, its allegedly toxic work environment, and discussions on doing business with the Chinese government, which currently bans it from the country. It has been fined almost $10 billion by the European Union for abusing its dominant role in online advertising and its exclusion of competing services on its Android mobile operating system.

Other signs of the backlash: After New York Gov. Andrew Cuomo and New York City Mayor Bill de Blasio (now running for president, too) cut a deal with Amazon to locate a second headquarters in Long Island City (along with Crystal City, Va.), protesters, led by local politicians and cheered on by Rep. Alexandria Ocasio-Cortez (Democratic Socialist—N.Y.), drove Amazon and 25,000 potential new jobs out of town. Most notable in that dispute: The protesters depicted Amazon not as a tech innovator or boon for price-conscious consumers but as a giant corporation feeding at the public trough.

“These companies are about to be smacked down from a regulatory perspective,” Subramanian said, adding Big Tech today is in the hot seat like Wall Street was 10 years ago.

So, it’s no surprise the two companies who’ve faced the most scrutiny — Facebook and Alphabet — have gained 25% and 20% over the last two years through Wednesday’s close, trailing the Nasdaq’s 26% return, all excluding dividends. Meanwhile, Amazon, for which the New York brouhaha was like a loose thread on Jeff Bezos’ shoulder, has soared 92% and, irony of ironies, Microsoft, whose big antitrust action concluded in 2001, has gained 87% during that time, also excluding dividends.

It’s a sea change — and investors can’t afford to ignore it.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 1,198.76.

The projected lower bound is: 1,080.68.

The projected closing price is: 1,139.72.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 35.9990. This is not an overbought or oversold reading. The last signal was a buy 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 41.30. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 17 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -78. This is not a topping or bottoming area. The last signal was a buy 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 17 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed down -10.650 at 1,140.770. Volume was 18% below average (neutral) and Bollinger Bands were 50% wider than normal.

Open High Low Close Volume___
1,140.5001,145.9731,129.2241,140.770 1,199,300

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1,150.29 1,195.37 1,134.96
Volatility: 35 31 34
Volume: 1,466,872 1,467,628 1,619,592

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

ALPHABET INC C is currently 0.5% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of GOOG.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on GOOG.O and have had this outlook for the last 15 periods.

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