Google Poised To Fall (GOOG)

Google GOOG appears poised to fall, given the market uncertainty over this supposed Groupon acquisition. Reports are that the purchase could be in the $5-$6 billion range, which would make it Google's largest acquisition ever. Google is currently trading around $565 a share, and if Wall Street believes that it overpaid for Groupon (assuming the deal even closes), then this would weigh on shares for some time until a major catalyst, like a blowout earnings report or some positive news coming out of Groupon justifying the purchase price. We could see Google trade down to the low $550's on a technical basis, which would be better to initiate a position for a shorter term trade. Another going concern for Google is the European Commission, which just started an inquiry into Google's practice. When the organization did this to Microsoft MSFT, it was a tremendous albatross for the company, and its shareholders, and I would expect no different from this inquiry. Disclosure: no position in GOOG or MSFT