Has the bull run ended for Google?

After reaching a record high of $747.24 on an intraday basis on November 11th Google proved that gravity does indeed exist as its stock plunged over $120 in just 4 trading days!!

The old market adage was proven true again: "They slide faster than they glide"

So what is going on in Google(GOOG)?

After the 16% drop from its recent high, Google barley managed to rally back to the $675 level before succumbing to selling pressure later in the day. While the rally of over $50 a share from the low seemed like a big deal it only represented a 38% recovery and was not impressive.

We expect Google to be more of a two way street as it's bread and butter income advertising begins to soften based on a weaker outlook for the economy. Look for more sideways action and a retest and possible break of the recent low of $626. As we have said before on this blog, perception is everything in the market.

Seventy percent of our technical indicators are not looking rosy right now for Google.

Listen to the markets ... they tell the real story.

Adam Hewison

Market Thoughts for a Tuesday ...

During World War II, German submarines known as U-boats scoured the shipping lanes of the North Atlantic looking to torpedo merchant vessels bringing much needed war relief to England. Hundreds of ships, and thousands of brave men met their fate in the icy waters of the North Atlantic.

What have submarines got to do with the current sub-prime disaster? Well the key back in WWII was you couldn't see the torepedoes until it was too late. It seems to this market observer that the sub-prime like those WWII subs remains hidden and many companies don't realize that they have been torpedoed until it's too late.

E-Trade (symbol ETFC) is a perfect example and the latest sub-prime victim, as it's stock got hammered on November 12th.

Many analysts are openly speculating that E-Trade might declare bankruptcy!

The economic unknown to the markets and the big fear for everyone is how many more torpedoes are lurking out there in the portfolios of banks and institutions?

So what's an investor to do?

Well, the best way to avoid disasters like Structured Investment Vehicles (SIVs), Collateralized Debt Obligations (CDOs) is to learn how to avoid them.

This short, four minute video trading lesson, will show you the exact rules you need to follow to avoid meltdowns in the future. It will also show you how you can even profit from disasters like E-Trade.

Watch it as our guest. No registration required.

It is extremely hard to miss the hype regarding the historic highs of crude oil. Everywhere you turn, analysts are projecting contradictory price targets. Will OPEC let the prices keep rising? Will we restructure diplomatic relations to stimulate supply flow? With the questions and suggests in the air, there is one thing we know that is a definite... the holiday season gives the gift of demand!

Will crude oil reach $100 a barrel? Although we have seen a small pull-back in recent days, how long until the price climbs with automobile and air travelers packing up for a trip to grandmothers house? Steven Schork of the Schork Report, an industry newsletter, noted that drivers have gotten off easy in recent months. Commuters have not seen a tremendous jump in gas prices, however with many U.S. oil refineries undergoing maintenance and more drivers and airline passengers heading to holiday destinations... demand is set to pick up. Shork also noted the likelihood that we will see less gasoline inventory this spring then previous years, which could push gas prices up to about $4 per gallon.

The high crude oil prices won't just hit you at the pump this year, but they will also slam you at the airline ticket counter. The price of jet fuel has increased consistently for the last 3 years, and airlines are finding it necessary to raise ticket costs to protect their bottom line. Will Alibrandi, an analyst for the aviation market analysis firm Forecast International said, “any cost gets returned to the customer, so they've been bumping up ticket prices to make up the difference." With that said, American Airlines added a $20 fuel surcharge to tickets and other airlines jumped on the price increase bandwagon.

As the holiday season blows into town so will the chill of winter for homeowners using oil to heat their homes. Crude oil prices go up, so price contience consumers try to turn the thermostat down! However, how low can you go when temperatures drop. Homes in the Northeast US will unfortunately bear the burden of rising energy prices this season. The Energy Information Administration projects a 22% increase in heating bills this year than last. YIKES!

We haven't seen the gas prices shoot up to astronomical heights, YET. However, with the holiday season approaching, increasing demand and supply projected to decrease... you can imagine how the prices at the pump and airport will not bring you holiday cheer.