Jim Cramer upgrades PCLN (Priceline.com) to Sell. Sell?

You have to love the antics of Jim Cramer. I give credit to the guy, he is entertaining at times. But I guess you have to be when your on National T.V giving out stock advice... the type of advice that has lost hard working blue-collar folks lots of money. Heck, Cramers remarks about Bear Stearns right before the collapse, will go down in infamy. (Watch it here:)

Over time, you learn to tune out the noise, and focus on the trade. So why talk about Jim Cramer today? Well because he created his "Pigs get slaughtered" list. (Here for the article) . The uber bullish Cramer, who has helped pump the "High Flying Stocks" of the past two years, is now saying stay away.

His little baby CRM is on the list, as well as LULU, GMCR, PCLN, FOSL. "Well golly gee willikers Jim, You sure nailed those!". Why didn't you say stay away PCLN at $550?? Oh thats right, because you said PCLN would continue to move higher if it beat on earnings:

Priceline.com (PCLN): This online travel deal company reports their 3rd quarter Monday after the markets close. Cramer thinks this is one of the few high-flyers that haven’t been crimped. In order for the stock to continue flying high, Cramer said the market needs to see $1.42 billion in revenue along with proof that Europeans are still flying.

LULU, FOSL, and GMCR also off 25%+ from their recent highs. Come on Cramer? PCLN is off $100 in under 30 days, and NOW you say something!?! 

What a joke. Its obvious there are other factors involved in PCLN's recent sell-off, including funds reducing their risk in equities. But PCLN remains the behemoth of growth stocks, this sell off non-withstanding.

I would compare the Dec 14th warning from Jim Cramer to stay away from PCLN, to a mom telling the child to keep their hands out of the cookie jar. It doesn't really do anything more then remind us the cookies are there... and we all like a good cookie.

PCLN looks to be setting up nicely for a reversal, with some above average volume today. It tested the lower bollie again, but looks ready to break to the $480-$490 level in the next few days.

PCLN 12-15

Dont worry Jim, I know you are nervous about leading your sheep into the slaughterhouse once again. But the sheep are smarter this go around. Are you??

Check the chat and forum for more trading ideas.



JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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