Two Ways to Play: Google May Get Out of China
Strengthen your portfolio in good times and bad.
Top story in the tech sector last night, Google (GOOG) said it may completely pull out of China after a major security breach.
The Internet search giant said on its blog that it had discovered "highly sophisticated" attacks on Google as well as 20 other large companies that resulted in the theft of intellectual property.
Specifically with Google, hackers were trying to access the Gmail accounts of certain Chinese human rights activist. Google has complied with Chinese rules to censor its Chinese search site. But this may have been the straw that broke the camel's back as the company ponders whether or not to withdraw from the country physically altogether.
From the Bull Pen: It's amazing how the market already "knew" the news in Google before it hit the wires. The easy part of the bear trade may be over and the stock may actually be setting up as a buy soon. Professor Sean Udall is using the $575 level as another area to add on weakness. One can consider that trade, if and when it gets there.
From the Bear Cave: Tech stocks have been big leaders during the running of the bulls. But that leadership has been fading. If you believe the market is due for a correction, the tech ETF (XLK) may be an opportunity. A buy stop can be set near $23.
For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.
A Quick Check Around the World
Asian trading closed with the Nikkei -1.32%, India 0.50%, Hang Seng -2.59%, Shanghai -3.09%, and Taiwan -1.36%.
Across the pond, we see the FTSE -0.29%, CAC -0.12%, DAX 0.20%
As of 8:15 AM EST, S&P Futures are trading +3.00 to 1137.00. Nasdaq futures are +3.500 to 1869.00.
A Look at Commodities
Over in commodities, crude oil is -0.78 to 80.01 while gold is +4.800 to 1134.30 this morning. Silver is +0.165 to 18.420 and copper +0.0085 to 3.3575.
The dollar Index is -0.2950 to 76.8250.
On the Radar
10:30 Crude Inventories
02:00 Treasury Budget -$70.4B
02:00 Fed's Beige Book
Click here for the full trading radar.
Happy Hump Day! Good luck!
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