CME (CME Group) stock has been ripped to shreds the past few weeks, on the MF global disaster. Rumors out there that CME will be on the hook for some of the losses.
I dont think that will be the case. Either way, CME looks ready to bounce from the $220 level. $240 should come in short order on the $230 break.
Huge volume this morning. Playing the JAN 21st $240 calls currently asking .75.
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.
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.
Priceline (PCLN) is one of the few remaining "momentum stocks" that hasn't succumb to it's lofty expectations. The last few months have seen many of the high fliers, come crashing down to reality. Stockw like: NFLX, TZOO, OPEN, SINA have all been a victim of their own success. Driven to insane heights, only to come down just as hard on some fundamental or news worthy item that the street didn't like.
Priceline has avoided that fate, for the time being. The company has actually reported earnings that have demolished expectations, and almost doubled its EPS year over year for it's last Quarter.
With most analysts price targets at $610 and above, one would think PCLN would have lifted off post earnings and hit all-time highs. The lift-off did happen post earnings, for a day. Then the sell-off began. PCLN topped out at a little over $550, and a close to a month later, sits at $445.It also bounced off it's lower bollie band today.
Retail traders are not responsible for the sell-off, and looks more like hedge funds or institutional investors, taking some of their position off the table. Goldman Sacks also put the put the internet sector on it's buy list today sans Yahoo.
Normally that would be enough to prevent the 4% haircut in PCLN shares today, but Goldman Sacks has lost their luster.
We do like PCLN here for some action on the calls side. Catching options on the right side of the trade in a stock trading in the hundred dollar level, can equal huge gains.
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Autozone reported earnings this morning. Analysts were expecting an EPS of $4.44, Autozone reported $4.68. A key quote from Autozones press release,
"This past quarter marked our twelfth consecutive quarter of 20% growth in earnings per share and our twenty-first consecutive quarter of double digit growth."
Growth stocks were all the buzz at the start of the year, and seemed to get old as we head towards the end of the year. AZO continues to be the one that is diamond in the rough, and should see more upside here, irregardless of its current hefty share price. AZO's low BETA allows for option traders to buy calls on the cheap, and should reap large gains as it moves to the upside here.
This stock is no NFLX, so when i see the company buying almost 1 million shares @ $325 avg last Quarter, with $650 million left to purchase, I feel even more confident of continued upside here.
Looking at the $360 Dec 17th Call for .50/.55. Will take half off when the calls are $1.
SINA has been brought down from the high $80s since the start of november, for multiple reasons including its earnings. Not a big fan of these china stocks, but figure this one squeezes like it has in the past. Will alert the call position after open but expecting $75-$78 in short order.
