Google Stock Getting Stronger (NASDAQ:GOOG) $750 Still In The Cards

“Google (NASDAQ:GOOG) should report a giant upside surprise this quarter,” Jim Cramer said on Tuesday’s Stop Trading segment on CNBC. “There were a lot of extra ad dollars available in the fourth-quarter because things got better,” Cramer said. “Advertising spending didn’t go to print or radio, it went to some TV, but a huge amount to the Web,” he added. Cramer mentioned that Google is on par with the Super Bowl in terms of its audience reach.

He seems to be sticking with his $750 price target for Google which he predicted on Dec. 15. TD Ameritrade Holding Corp’s (NASDAQ:AMTD) stock was upgraded on Tuesday be KBW to outperform from neutral. The upgrade also helped to take up shares of Charles Schwab (NASDAQ:SCHW). Cramer called the upgrade gutsy. He predicted that the retail investor would return to the market in 2010. “The retail brokerage group should make a very good place to be next year,” he said. Lastly, Cramer pointed to the strong performance in Jabil Circuit (NYSE:JBL), Arrow Electronics Inc. (NYSE:ARW) and Vishay Intertechnology Inc. (NYSE:VSH) as proof that Q1 next year will be better than expected in tech. Cramer said these three stocks are a better indicator of the overall performance of the tech sector than Microsoft (NASDAQ:MSFT) or Dell Inc. (NASDAQ:DELL). “Tech is going to shock in the first quarter,” Cramer said. “It’s going to be explosive.”

Google Hits Target, Closes Above $600

Tuesday, Google (GOOG) closed above $600 for the first time since January, 2008. This milestone places the stock right at the minimum price target I estimated for the GOOG post-earnings trade. With a month remaining before January options expiration and the stock market stuck on “cruise control” for now, I believe I have much more than a 50/50 chance of closing out the January 600/610 call spread at or near full value: GOOG needs to gain another 1.5% to close above $610. The current return on the spread is about 43% which represents excellent leverage compared to the 4.7% gain in the stock since I initiated this latest post-earnings trade.

The chart below shows that GOOG’s stock remains very bullish. Price trend remains firmly up. On-balance volume (OBV) is still trending upward and is at its highest level for this rally. Trading volume has even increased a bit in the last three trading days. Pullbacks throughout this rally have been very mild: GOOG tagged the 50-day moving average (DMA) just once (in July) and all other pullbacks have found support at the 20DMA (currently around $590).

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