Source: Google Images
While the phrase, “Say it ain’t so, Joe” is by equal turns apocryphally attributed to a reporter or a young boy as it pertains to “Shoeless” Joe Jackson and his involvement in the 1919 “Black Sox Scandal”, we’re going to use it today with respect to a member of the Big 7. Interestingly, Eliot Asinof’s book, “Eight Men Out: The Black Sox and the 1919 World Series,” could be slightly altered for the current environment to, “Big 7 Stocks Out.” But for right now we’re going to concentrate on Alphabet (GOOGL). Say it ain’t so.
Technical work for GOOGL is weakening such that we think it’s next important move is lower. Its Technical Score has weakened to a Neutral reading of 2 (Amazon, meanwhile, has a Technical Score = 1; we’ve highlighted our reasons for believing AMZN weakens, too), the stock has made no net progress since late July 2021, daily momentum is in negative territory, weekly momentum is fast decelerating, and its monthly momentum indicator – below – is cresting, distributing, and rolling from a Jimmy Cagney as Cody Jarrett in “White Heat” / “Made it Ma! Top of the world,” overbought! If all you knew about GOOGL is what is being offered by the bottom panel in the monthly chart below, would you be a buyer of it here?
GOOGL Monthly w/ 12-Month Moving Average and Monthly MACD
GOOGL Weekly w/ 40-Week Moving Average, Weekly MACD, and Rel. to S&P 500
