Want to take a bite out of a FANG stock? Here’s how I’m trading Google. (February 07, 2020)GOOGL WWE TWTR FNKO
I want to look at Google ( NASDAQ: GOOG ) today; this is one of the FANG stocks of course. The one time recently that I see as THE time to buy Google ( NASDAQ: GOOG ) was right here. The stock was squeezing and then it broke out right there on pretty high volume.
Since that time, 1400.00, should have got in a little bit earlier than that but we will say 1400.00. It went up to 1500.00, on a percentage basis that’s not that big of a deal, 8 percent. But if you are trading options on this, that’s a massive move, you are making a lot of money on that kind of move.
That’s how you trade Google ( NASDAQ: GOOG ) and Amazon ( NASDAQ: AMZN ) and Tesla ( NASDAQ: TSLA ), where they have huge point moves but on a percentage basis, because they are such expensive stocks, you don’t get that much of a percentage move. When a stock moves $100.00 or something even the most expensive options are going to make you good money just need to know how to trade then.
The point is, I think that Google ( NASDAQ: GOOG ) is getting ready to set up for another move higher. The stock is starting to squeeze again; it’s not there yet. But if the stock starts breaking out above 1500.00 I think you have got probably another $50.00 to go, about 50 points on top of this 1500.00.
So I would wait for Google ( NASDAQ: GOOG ) to break that level before taking another shot at it; knowing it’s above the 50-day moving average but on this chart virtually every day is. It tested it a little bit here last August but that was last August it’s not now. The last time it tested it was in October when it fell. Since that time it hasn’t hit the 50-day moving average it’s been more like the 20-day moving average, which is where it is right now. So I would keep an eye on Google ( NASDAQ: GOOG ). If it breaks out above 1500.00, which is just 21 points from where it is now, boom, that’s where you are buying this stock.
Now one thing, last Thursday, that was just yesterday, we traded the open live. And a lot of members made a lot of money on WWE ( NYSE: WWE ). I wouldn’t touch this stock now but this was a classic gap and reverse. All I know is a lot of people made a lot of money on this stock.
Similarly, going the other way was Twitter ( NYSE: TWTR ) gapping up above the 200-day moving average, this was yesterday here. It gapped up above the 200-day moving average and never looked back. So we jumped on this pretty early and then got several percentage out of it.
The thing about day trading or 59-minute trading as I call it because you don’t want to trade for the day, if you trade for the day you make your money in the morning and then you give it away and probably more during the rest of the day.
Also, Funko ( NASDAQ: FNKO ), the same kind of thing. This looks funky; the stock gapped way down and then kept going. But yesterday there was money to be made the first thing in the morning. We made money on this thing for several percent.