Alphabet Inc. (NASDAQ:GOOG) Rare Political Consensus Casts Cloud

Alphabet Inc. (NASDAQ:GOOG) Rare Political Consensus Casts Cloud

Alphabet Inc. (NASDAQ:GOOG) Rare Political Consensus Casts Cloud

It’s a scenario that sets the stage, finally, for legislative change that could do what the FTC and the DOJ will likely be unable to meaningfully do. Additionally, it’s an element that could meaningfully affect Google stock.

“If we want relief and we want it in our lifetime, I don’t think antitrust is the way to go,” says Hal Singer , a senior fellow at George Washington University’s Regulatory Studies Center. His suggested remedy is Congressional action that gives the FTC new and more authority. This involves protocols to create and enforce rules that apply specifically to web-based and web-centric players.

And Singer’s far from convinced a breakup would do much good anyway. He commented, “If you had five Baby Facebooks, they would still have an incentive to steal.”

That makes legislative action a faster solution for Washington. More critically, it’s the one that current and prospective Google stock owners should fear the most.

To that end, the public – as in voters – are also increasingly fed up with big tech. A recent poll indicated that more than 40% of consumers don’t trust major technology players with their personal data. If nothing else, clear and high-profile legislative action could prove politically expedient.

Bottom Line for Google Stock

There’s the rub. Action that is fair or unfair is now irrelevant. Change is coming. Even if nobody knows what that change may look like or when it may take shape, the rhetoric has morphed into an irresistible force.

Breaking Alphabet up may not be the most desirable option to be sure. But it may just be enough to appease Washington DC’s lawmakers from imposing more heavy-handed changes later. It may be a split for visual effect only: we might see a situation with all the various pieces still working in unison, even if reporting results separately. It may be enough to prompt Washington to call the dogs off altogether, however.

In that light, the activists who were clamouring for a break-up on Wednesday arguably had the right idea.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1,178.41.

The projected lower bound is: 1,049.06.

The projected closing price is: 1,113.74.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

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 81.9940. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 12 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 51.82. 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 buy 11 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 107.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 11 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 buy 8 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed down -6.360 at 1,115.520. Volume was 6% below average (neutral) and Bollinger Bands were 3% narrower than normal.

Open High Low Close Volume___
1,119.6101,122.0001,111.0101,115.520 1,395,696

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

Moving Averages: 10-period     50-period     200-period
Close: 1,097.71 1,150.72 1,121.09
Volatility: 12 35 35
Volume: 1,294,076 1,621,989 1,654,974

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% below its 200-period moving average and is in an upward 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 bullish on GOOG.O and have had this outlook for the last 2 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.