Google Downgraded: Should you Buy, Sell, or Hold?

Tuesday, August 16, 2011. Equity analysts at Standard & Poors downgraded Googles stock rating from buy to sell Tuesday, following the search giants decision to acquire Motorola Mobility for $12.5 billion.

In a statement on the rating reversal, S&P equity analyst Scott Kessler said that the Motorola purchase puts Google (NASDAQ: GOOG) at risk. S&P does not believe Motorolas patent portfolio will ease Googles patent woes.

First of all, before I nail Google for you every which way from Sunday, I must get a few quick macro issues off my chest. Before you put up with the short rant that follows, I think it proper that I introduce myself.

First off, I want you to recognize that the global financial sphere has been in a perpetual state of fundamental dysfunction at least since the collapse and bailout of Long Term Capital Management way back in 1998. I also want you to recognize that this rather sad fact in no way impedes the ability to profit from one's endeavor in the markets. In fact, if you have half-a-clue, all of the craziness actually enhances profitability.

You can make money in both up trending and down trending markets.

So who can we thank for this intractable and seemingly endless predicament of rollercoaster-uncertainty we all find ourselves in? Basically, we can thank corrupt systems of government, and insolvent central banks who continually issue more and more bailout-poker-chips for which there is no tangible unit of value to squarely settle current and future accounts.

The ring leader of them all is Governor Perry's treasonous Federal Reserve System, now led by Uncle Ben Bernanke and his global cartel of monetary-monopoly-monsters. This bunch of academic and political ignoramuses must stick with their flawed paradigms at any cost, otherwise the super-powerful and elite risk losing all of their precious monopolies. That's exactly right, these disengaged blockheads will stick to their ruinous scripts despite the fact that their continued interventions and egregious political inactions place America's once glorious Republic at serious risk.

Strange as it may seem after all that, I remain long-term bullish on America! Why? Because sooner or later, and well before the walls come tumbling down, America is gonna roll up its sleeves, dig in deep, and realize it's in a fight for its very survival. When that point of recognition becomes widespread, it's going to turn into a street-fight and things are gonna get real ugly, and a whole lot more painful than the walk-in-park these pansy-interventionist-Keynesians' are trying to tip-toe us through.

From the rubble, the true core of America will emerge victorious albeit scarred, battered, and bruised. From the depths of despair to the pinnacle of hope, America shall one day lick its deep wounds of victory, and then lead the way forward into the 21st century.

More likely than not, Google will remain present throughout. Now let me walk you through my take on Google following a brief primer on my basic approach toward engaging in battle with any individual stock or macro market.

So far as strategic trading and investing is concerned, I couldn't care less which side of the market I'm on. Shorts work just as well as longs in any timeframe. Another tactic close to my heart is that of strategic diversification.

Given that the entire financial sphere basically moves in unison, apart from the tactical deployment of varied strategies that have been mathematically quantified to produce absolute returns over numerous market cycles, there are not many venues for efficient diversification when the markets as a whole all start reacting together.

This is especially true when headlines drive the markets, and when technicals are driving the price action. The rest of the time, I suppose it's conceivable to take fundamental analysts seriously. During such times, I remain of the belief that all such fundamentals are already baked into the price action, so I don't bother listening to story-tellers pushing a macro-market or a specific stock on its underlying fundamentals.

So how do I approach Google, and how am I strategically engaged? The same way I approach every other stock and macro market. It's so simple that you're not going to believe how effective it is. All I do is trade with the trend until it changes. I find trends by using proprietary moving average algorithms. Do they work 100% of the time? -NO. Do they work over the long-haul? -YES. Do they work the same in medium-term and short-term time-frames? -YES.

Before I tell you exactly where I stand on Google, let me show you where I've been and how my tactics and strategies have far outpaced the flawed buy & hold approach across all timeframes.

Long-Term Investment Strategy

Mid- Level Trading Strategy

Short-Term Trading Strategy

Rather than belabor the rest of my coverage with images and text, I was going to cut to the chase in revealing exactly where I stand with Google by sharing with you a chart cast video, which is what I deliver day-in-and-day-out for each of the markets covered in the Chart-Caster portfolio.

Unfortunately, I haven't yet learned how to post an embedded video here on Benzinga. For all I know it may not be possible. I tried, but it didn't work. So I guess your just gonna have to sign onto to the Chart-Caster service to get the bottom line on Google along with the rest of the markets covered in my portfolio.

~ ChartCaster

Chart-Caster is for those who wish to earn money using Chart-Casters simple, easy-to-replicate trading strategies. In all timeframes and tradables (including ETFs and Futures), Chart-Caster covers 6 essential broad markets as well as 5 of the most widely-held individual stocks. Chart-Caster delivers the goods on daily basis.

The Chart-Caster covers the following broad markets and individual stocks.
US DOLLAR | S&P-500 | NASDAQ-100 | GOLD | CRUDE OIL | BONDS
APPLE | GOOGLE | NETFLIX | AMAZON | CATERPILLAR