Alphabet Inc Suffers Distribution

There is something going on at Alphabet, Inc, better known as Google, (GOOGL) with large down swings on high volume over the last six months. One gets the feeling the month end earnings report (April 27, 2017) may have a few negative surprises. We have seen stories that advertisers are unhappy with the shotgun approach used by Google to apply advertising dollars. Some one is unloading.

A high volume downswing can be bullish if the damage to the trend is not too bad and is infrequent, but when you see five down swings where the volume is greater than the up swing, you just have to conclude prices are being held up by the market makers to allow some big whale to sell at very good average prices. 

Our readtheticker.com customised OBV tool (RTTOBV-Trend (Daily)) shows the trend has changed for the price volume pressure as it shows divergence. This warning suggests to investors be careful out there.

However, the Wyckoff law of Effort vs Results would suggest that with all this volume on the down swing and yet to do serious price damage can be considered bullish. But it still is not a great sign, while other stocks can be considered as they show better price and volume action health. 

The point is the next high volume swing, maybe a feather that breaks the trend.
 

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