Another day at the casino, and the marke…
Another day at the casino, and the markets are trying to crawl higher despite the ugly reaction to a decent fundamental Google report. Google’s down 6% on the day and having a hard time stabilizing, despite my theory last night that we’d likely see it trade to flat today in reaction to that report. Google could still rally before the day’s over, but a 6% hole in the morning like this means it’s very likely it’ll be in the red when the markets close. That said, as I pointed out repeatedly, I didn’t want to buy Google call options or to build the Google position up before we got through this earnings report. I didn’t feel like we’d have much of an advantage of knowing how the stock would react even if we got the fundamentals right…and indeed, the market’s reaction to a decent Google report is an ugly counter to the reaction it gave Riverbed’s strong fundamental report earlier this week. I’m going to double the size of my Google common stock position this morning which will bring it up to being closer in size to some of my other long positions…none of which are more than 1/4 the size I will want them to be by mid-summer when I’ve got this portfolio built back up using my steady-scale-in approach that I’ve been taking.