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Indicators Say Google Is a Strong Buy, Goldman Sachs Is Overbought


Plus, a review of the performance of Netflix, Bank of America, Visa, and more.

It's time to review the following names: Google (NASDAQ:GOOG), Netflix (NASDAQ:NFLX), Ford (NYSE:F), (NYSE:CRM), Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), and Visa (NYSE:V).

For those who are not familiar with our proprietary algorithm, we use a quantitative statistical price series that silos 10 baskets of over 200 proprietary indicators. We do not forecast price and do not use common technical analysis.

Readers will recall that we have been bullish on Google since $699. At this juncture the name is still rated a Strong Buy and is not Overbought; we suggest remaining long.

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Next we have Netflix, which readers will recall made our most rapidly improving list back on November 16. We told investors to take profits at $100. Unfortunately, we didn't wait for an Overbought level or a downgrade in our ratings and left a considerable amount of profits on the table. This is why a systematic investment process often is superior from a discretionary one; it removes the emotional aspect of investing. It is hard to believe, but the name is only now Approaching Overbought at the $169 level. After a 100% gain since getting long, it's time to take the profits.

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We told readers to consider exiting Ford because it was Overbought at $14.22. We told investors to sell 100% at $14.22. At this juncture we'd be sitting on the sidelines.

Click to enlarge still remains a Strong Buy and is part of the top-20 strongest S&P 500 (INDEXSP:.INX) names. We first alerted readers at $158 back on November 30. At this juncture we would still remain long.

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Bank of America is a name we recommended getting long back on August 24. It hit Approaching Overbought on January 4 at $12.11. At this juncture we are now at Neutral and not Overbought, however, we are sitting on the sidelines. Since that first buy and the exit, the stock gained 48%.

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Goldman Sachs just became Overbought at the $147.11 level. We suggest reducing 100% exposure to this name.

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Another name headed toward the Approaching Overbought level that we alerted readers to was Visa. The name became Overbought at $160.51. Today the stock is getting a lift off Mastercard (NYSE:MA) earnings. We would use this opportunity to reduce long exposure.

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To learn more about ChartLabPro's algorithm visit

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No positions in stocks mentioned.
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