We have chronicled the move of Priceline.com(PCLN) over the past few months. We have been one of the few public Bulls on this stock. While everyone was calling for a sell-off, we were buying calls. You can read some of them (here).
We noted on Monday how the past two week sell-off was a much needed enema. All the momentum stocks were taken to the woodshed… PCLN included. This market is not for the normal retail trader, as this would be the person who thinks Priceline.com(PCLN) is overbought, and is set for a massive sell-off(which folks have been clamoring for since $400). Right now is the time for the trader with the steel balls, unfazed by the volatility, to grab calls on Priceline.com(PCLN).
As we write this, the stock is trading at $728. We fully expect a break of $750+ this week, as the upside resistance has been removed(thats right you chickens).
As Yogi Berra would day, “It’s DeJaVu all over again!”
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