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Google and China: 360 Degrees on RealMoney

Editor's note: News that Google (GOOG - Get Report) was considering pulling out of China after a network hack sent the stock reeling. RealMoney 's expert commentators looked at the story from all angles and offered their perspectives. has always believed that offering a wide variety of opinions and viewpoints -- rather than a monolithic "house view" -- helps readers make better-informed investment decisions. In that spirit, we bring you "360 Degrees," a feature that takes advantage of our varied stable of RealMoney contributors, who offer analysis of stocks and the markets from all angles.

Jim Cramer started the conversation early:
5:50 a.m. EST

Lotta bogus numbers out there about how China is important. JPMorgan is out with a $600 million in revenue number. I think that's way too high. It's China, so it is per se important, especially for the Droid, and when you have a high-multiple anything that's not additive to growth, it will hurt. I am just trying to keep things in perspective and not give up on Google (GOOG - Get Report) on this one. Baidu (BIDU - Get Report), of course, is soaring.

Position: None.
Timothy Collins looked at the implications for Chinese competitor Baidu and told you what to watch for in GOOG:
Holy BIDU, Batman!
8:54 a.m. EST

Black swan for Baidu (BIDU - Get Report) here? More like my boxer dog giving birth to a monkey. The big question on everyone's mind is what happens next for BIDU and Google (GOOG - Get Report). As far as BIDU goes, if you are holding JanUARY calls (I wish I were, but I am not), then congratulations.

Will it go higher or lower from premarket? I have no idea. I suspect the stock will test the $440 level, but with a substantial short interest and this being a momentum name, this one may be wild. If I were holding calls, I'd stick with the mantra "Pigs get fat. Hogs get slaughtered." I will look at the stock on the open, and I am considering a straddle play since I expect volatility, and I do not think pinning will be an issue due to this major move.

Google looks to open below its 50-day simple and exponential moving average, but I don't care about that number. It hasn't really mattered in the past several months. However, look at the 30-day SMA and EMA. Chart it. Go ahead, I'll wait.

You'll find that the break below $600 was the key, and it also acted as resistance on that last spike. I think for GOOG, we need to look at the weekly chart now, and I use a 14-week MA here. Whether you are looking SMA or EMA, it would put support somewhere between $575 and $579, right where we are now. If it holds, it is an attractive entry, based on the weekly, so adjust your time frame for recovery accordingly. I am still long GOOG volatility, with $580 being my home-run number. I will post any adjustments or trades, but I will be looking very closely at both names this morning.

Long GOOG volatility.
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BIDU $145.34 -4.75%
CHU $10.85 -0.64%


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