4-17-2012 watchlist
Some Decent earnings from Coke, JnJ, and Goldman Sux should help prop the market today. Too many people calling for AAPL to sell off now, so that means it goes back over $600 in short order, although there are rumors Imac and notebook sales struggled last Q. READ ON (Subscribers Only)
I will make this quick, as it's about making money, not losing money in this market. In tribute to the Food Network here are some ingredients needed to lose money in this market:
1. Use only technical analysis and fundamentals
2. Use the P/E ratio to determine a stocks value
3. Listen to analysts and price targets
Want to make money in this market? Check us out in chat.
LinkedIn(LNKD) going to $150 short term? Who in their right mind would think a stock most think is insanely overvalued at $103, will move another 50% in the next few months? Well we do. We wrote about LinkedIn(LNKD) after earnings(HERE) and last week after it broke out like we said it would above $100(HERE) .
Its only when folks start believing something can happen is when it starts. Take a look at Priceline.com(PCLN) chart below. Everyone and his brother was calling the top on PCLN since it went mid $550s in the spring of 2011. It's only when everyone started believing, that it found its legs into the stratosphere. (and yes we called it at $445)
Dilution from a secondary offering? Lock-up shares hitting the market? Multi-billion market cap for a company doing a few hundred million in revs? These are exactly the reasons you see asshole analysts posting $60 PT on the issue. Tune out the noise, and focus on the trade. We will have more on LinkedIN(LNKD) this weekend. For now, just remember who told you its going to $150+ by the summer.
Back in the day, an upgrade from Goldman Sacks was a welcome sign for a company and investors alike. The conviction buy list actually lived up to the name. Recently it seems Goldman Sacks has lost its luster. Stocks it upgrades fizzle... the conviction buy list?? Isn't that the daily read in the New York Penitentiary?
Goldman Sacks finally read this blog. LinkedIn(LNKD), which is up from $64 in early march, eclipsed the $100 barrier today on an upgrade from the once relevant investment firm. We have been writing about this stock for weeks. Read here.
It didn't take overpaid analysts to see the bargain on LinkedIn(LNKD) shares. It must mean Goldman Sacks(GS) finished loading up on some shares. Fully expect this manipulated stock to cross and hold the $100 barrier for good sometime in the next 5 days.
We said it would break $100 last week.. a 10% move. Well no more then 7 days later, the stock obeyed our orders. Option traders reaped the rewards today. Take a look at the charts:
AFTER
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.