Google (GOOG) Beats; Shares Up 10%+

Tomorrow Rome parties again... don't worry about whatever Citigroup (C) has to say tomorrow AM - "it's all priced in". Bulls will focus on Google... (the chart lied!) :) Unlike the "beats" by IBM or Intel, this one is legit.

Looking at the S&P 500 (bigger picture) we are now above support, the 50 day moving average, just under 1350, and the last level that gave us trouble was the upper 1380s/1390 level. We close today at 1365, and Google will embolden bulls big time tomorrow, so I expect a big rush of bulls into the door at 9:30 AM, and we might start tomorrow with a sizeable push to take us near that resistance stage in the 1380s. If we break north of S&P 1390 tomorrow, its time to bring out the party favors and funny looking hats since the bulls will romp. (until next week at least) - remember each day is going to bring a potential for a 180 mood swing but I continue to believe short of filing bankruptcy tomorrow, whatever Citigroup says will be treated as "not as bad as we expected" and completely shrugged off. It's all about psychology and Google will bring the bulls back in force... I'll have to look to buy some stuff tomorrow morning as I am extremely overweight in US pesos (cash) if the market breaks off into 3rd gear... but conservative stance will definitely mean we'll trail the market this week.

Intuitive Surgical (ISRG)? Not so much. Very good results - way too much expectation.

We'll see you tomorrow.

• Google's (GOOG) first-quarter profit grew year over year as revenue climbed 42%, and both figures handily beat Wall Street estimates, sending its stock soaring. Shares of Google dipped $5.49, or 1.2%, to close at $449.54 during Thursday's regular session, but were surging 11% in after-hours trading.
• For the quarter, net income grew to $1.31 billion, or $4.12 a share, from $1 billion, or $3.18 a share, a year earlier. Adjusted for certain items, Google earned $4.84 a share. Analysts were expecting $4.52 a share.
• Revenue climbed to $5.19 billion. Adjusted for traffic acquisition costs, revenue came in at $3.70 billion, above analysts' consensus expectation of $3.61 billion.
• Google's earnings release comes a week after rival Yahoo! (YHOO) reached out to Google to outsource some of its search ads. Yahoo! said it will begin a limited test of Google's AdSense, which will deliver relevant Google ads alongside Yahoo!'s search results.

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