Monday, February 9, 2026

Why Alphabet’s Weakness Is Actually Bullish

Trade of the Day Wake-Up Watchlist

"When a fundamentally strong stock underperforms during a sector rally, it's usually telling you one of two things: either something is seriously wrong, or you're looking at a compressed spring that's about to release."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

I love it when I see my favorite setup forming in unexpected places.

While the Nasdaq and other tech giants pushed higher Friday, Google (GOOGL) barely budged.

That kind of relative weakness usually sends traders running for the exits. But when it happens to a stock with Google's fundamental strength, it often creates the exact conditions I look for in swing trades.

Here's why I think GOOGL is setting up for a significant move higher, and how I'm positioning for it.

The Setup I'm Seeing

When a fundamentally strong stock underperforms during a sector rally, it usually tells you one of two things...

Either something is seriously wrong, or you're looking at compressed spring that's about to release.

With Google, I'm betting on the spring.

Google remains my favorite of the Mag 7 stocks. The business fundamentals haven't changed overnight. Yet the stock is getting treated like damaged goods after earnings, even while Meta, Apple, and others found their footing.

This disconnect creates the best swing opportunities - if you know how to read the technical signals.

The Point of Control

Here's where the technical analysis gets interesting. Google has established what we call a "point of control" around the $323 level.

 

The point of control is the price level where the most trading volume occurred during a specific period - think of it as the price where buyers and sellers agreed was "fair value" based on their actual transactions.

When a stock pulls back to test this level, you're getting a chance to buy where the most institutional volume traded.

Google closed slightly below the $323 area during Friday's weakness. Which means it needs to recapture it before becoming a true trade candidate.

And while it's off its recent high, the chart is still holding strong with EMAs stacked on both the daily and weekly time frames.

Not to mention a daily squeeze that's forming.

How This Stock Moves

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Here's what most traders don't understand about Google: when this stock decides to move, it moves fast and far.

Google can easily move $10 in a single session when momentum shifts. I've seen it happen repeatedly. The stock will grind sideways for days, then suddenly gap up $8 to $12 on nothing more than a sector rotation.

That's the nature of large-cap tech with heavy institutional ownership. They don't move gradually - they move in chunks as algorithms and fund managers adjust positions all at once.

Your Action Plan

The first thing I'll monitor is whether Google can reclaim the $326 to $328 area. That's where it needs to prove the technical tide is turning.

If we get that, the next test is the gap close around $333 to $335. Stocks that move with authority through resistance often keep going much further than expected.

I'm also watching broader tech rotation. If institutional money starts chasing tech again, Google's relative weakness could flip into relative strength very quickly.

If Google decisively loses the point of control, this setup is dead. Period.

Broader market weakness could derail individual stock strength. And there's always the possibility that the relative weakness isn't temporary positioning.

Maybe the market knows something I don't.

That's why position sizing matters more than being right about any individual trade.

Google's Friday weakness while tech rallied is creating exactly the setup I look for. Strong fundamentals, clear technical levels, and defined risk/reward.

However, it musht stay above the point of control at $323. If it can, Google's potential for $10+ moves gives us upside that justifies the trade.

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