All posts by jimmybob

The Bottom

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Bottoms come in all shapes, sizes, types and colors. Big and small? Long and short?

Nice bottoms have even become so popular they have their own T.V. Show. Nicki Minaj is very thankful for the bottom. 

 

 

Coco?? Last i checked there was a Zipcode request for that one. But yes, she has a T.V. Show as well.

 

Spotting nice bottoms can be considered an art form. Especially for a trader looking for the perfect time to go long. Is it the capitulation volume? Chart signals like the moving averages or bollinger bands? Sector news? Sometimes it's just intuition. Either way, on December 14th, 2011, we spotted the bottom of all bottoms. Priceline.com(PCLN) had just touched the bottom bollinger band at $445. We wrote about that action here. To add fuel to the fire, Cramer put Priceline.come(PCLN) on his "Stay Away" list the next day. We wrote about that here.

Check out that chart we posted:

Now check the chart nearly 3 months later as Priceline.come(PCLN) nearly hit $700:

 

Anyone can look at a chart like Priceline.com(PCLN)'s and figure the odds of it going down are better then the odds of it going up. If trading was that easy we would all be Millionaires. What separates those who make the millions and those who lose their money, are the ability to see through all the fog, the distractions, the short call articles like this one(here).

Cramer has been wrong to the tune of $255 in the past 3 months. Priceline.com(PCLN) is now up 64% from his bottom call. I guess Cramer does not like a good bottom. I'll get Coco his number.

More to come on Priceline.com(PCLN). Be sure to check out our chat for our trades.

 

 

LinkedIn on the verge…..

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It was 4 weeks ago, when we wrote about LinkedIn(LNKD) after it's steller earnings report. Since then the stock has traded in a range from $84 to $96. It closed at 90.67 today, and we think this is the week it breaks and holds above $100. Why? Well there are many reasons. First and foremost, the chart gives hints of an impending breakout. The Bollinger Bands are getting very tight. Also, look at the higher volume since Feb 13th. Looks like sellers are being churned through, and once those are gone, we can really start to move.

Winning in the options market is all about finding the stocks before they make a big move. Finding a cold stock before it's hot, or has news. It's also about finding past trends, as history tends to repeat itself. LinkedIn(LNKD) has had many volatile breakout moves(up and down) since it's IPO last year.

Will this be the week LinkedIn(LNKD) breaks out of it's trading channel, and takes on another digit? We think so and have positioned ourselves with $95, $97.50, and $100 March 17th calls.

Will we be right again like we were with WYNN,  PriceLine(PCLN), SodaStream(SODA), Fossil(FOSL), and many others so far in 2012?

I guess we will find out soon enough.

Heads I win, Tails you lose…

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Ever wonder how Houdini escapes from sure death? How Hulk Hogan wins the WWF championship? How Janet Jackson's nipple falls out of her bra during the superbowl?

The outcome is fixed. There aren't many certain things in life, and many people would say the only two things you can count on are death and taxes. I beg to differ. Death...Taxes... and a manipulated stock market.

Take tomorrow's over-hyped employment numbers. Do you think the numbers will actually have an impact one way or the other? If you say yes, then how?

So the numbers come in above expectations. What happens? The market will rally on the continued improvement in the U.S. economy.

The numbers come in below expectations. What happens? The market will rally(after a quick drop) because folks will buy on the hope of renewed interest in QE3.

Heads I win(bulls), Tails you lose(bears).

It's only when the last penny is in the hands of the Bears, that we will get any serious downside to this market. Will it be the summer? Maybe the fall during the elections? Who knows, but you have to trade what you see, and right now it's a market hell bent on making new highs.

 

Coming out of the closet

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"Coming out of the closet!" - well that would be the BEARS today. Not the Chicago Bears, or the Bad News Bears, but the market BEARS. The ones who have been trying to time the next market correction since December and SPY $115. Now imagine what your portfolio looks like when you have been short as the market has ramped up 15%. It sure must look UGLY. But today is your day to cheer and gloat... to say "I told you so!".

Go out and get a drink. Party likes it's 2008. You deserve it. A hard earned victory. Your battle against the limitless coffers of the world's government's was yours today. The QE1 and QE2 are ships sailing on the atlantic now.  Operation Twist? Isn't that a game you play with a few friend when you are drunk?

You knew it was only a matter of time before the weight of Greece and the eurozone debt problems took hold. China reducing it's GDP outlook to 7.5%? That was the icing on the cake. The Black Swan event is only around the corner. You've been betting on the short side since you saw this guy say the market will crash.

It's about time your insight, foresight, and intuition proved you right. It's evil work being a bear. Now you just need a 20% move to the downside to get back to even...

Only problem is, this government will not let that happen. Not when the president is waging his battle for re-election. Not when the battle of the economy is fully in his control. Should this market be up 30% from it's October lows? No way... but trading on the macro environment alone will only turn your portfolio red. Go ask any BEAR.

It will be time to head back into hibernation soon. Today was only tease. Another reason for the bears to throw money into a false hope of a correction.

I guess we shall see what the next few weeks bring, but I am guessing we start working towards $140 on the SPY.

 

 

 

 

 

 

Win! WIN! WYNN!!!!!!!!!

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We wrote about WYNN last night, and a possible move to $130 short term. What we wrote:

We like WYNN here and think $130 is in the cards in short order. We are putting our chips on the March and April Calls. Check out our watch list and chatroom for the strikes.

We were right with CME, ICE, FOSL, FSLR, PCLN, CSTR... the list goes on and on. And WYNN was no exception. The stock broke out in the morning and ran to $131.50, resulting in massive returns for anyone grabbing $130 calls. Not only that, we got the Hollywood drama we spoke about last night, as the stock was halted as WYNN was busy retracting an 8-k that hit the wires.

Volatility like this is an option traders wet dream. We were able to reload on some WYNN $130 calls when the stock reopened at $125. The stock rocketed to $132 and we were once again able to cash in on some massive returns. All these calls were alerted in our chatroom and watchlist.

Lets see what next week brings, but what a great way to end the week!!