By Chris Diodato
Good morning everyone! Hope no one was caught off guard, and currently waiting to dump a losing PCLN position at the open! So, PCLN has declined sharply to the $570-$575 level post earnings, and is stabilizing. What is so important about this level? $585 would have represented a gap fill, but the price shot right through that potential support zone. Well, it all goes back to a technical signal back in June. Check out the YouTube video to find out what I'm talking about!
We had some great plays to end an amazing week, and looking forward to another week of earnings plays to go along with a market that may be headed for 4 year highs. There is not many thing you can count on in life... death... taxes... and manipulation from central banks. It seemed like the world was coming to an end the last few weeks, now none of that matters. Continue to focus ont the trade and lets have a great week.
I posted retiredmms watchlist here: https://www.optionmillionaires.com/forums/topic/retiredmm-watchlist-7-30-2012/
Here are the ones I am watching today:
LNKD - already bought the $120 calls @ .80 on friday. I will probably look to add some $125/$130s so i can lock the $120s in sometime this week. There are MANY differeing views on LNKD earnings thursday, so expect a VOLATILE move. Whether thats up or down. who knows. But you know where I am betting it will go! ~ 🙂
PCLN - Every time a stock runs up $55+ in a day, folks start looking for puts. Pricelines move friday was an indication to me that folks had the stock and the sector wrong. I think PCLN continues to move on over zealous buying and breaks $700 today. I then think it will ramp to $740 this week. I maybe wrong, but these are the type of moves that make a few hundred into a few thousand. I have the $725 calls right now and may add more if there is any weakness.
AMZN - Again, this stock is one of those that make folks scratch their head. Why was it up after a poor earnings report thursday? Heck, they are making less profit and have an INSANE PE ratio! Again, all about growth and I think this stock is headed to $250+ this weak before any pullback. Closed near HOD on friday and I think $242+ comes today. I already have $255 weekly and will add some $245/250s after the open.
Stocks for earnings: FLS after the close : STX after the close
Like FLS for some calls, will post strikes in chat. Unsure of STX but think it will be volatile.
Thats all for now, lets have a great week!!!
We wrote about Expedia (EXPE) in April after earnings. With a solid earnings beat the stock rose from the low $30s to the mid $40s in two trading sessions. An astonishing move that was replayed by TripAdvisor (TRIP) a few days later. Online travel companies have been the talk of the town this past year, and Priceline.com (PCLN) has been the talk of the town the past 2 years.
With the Eurozone fiasco, traders and analysts started to bet on some headwinds for these companies, and TripAdvisor (TRIP) sure gave folks a reason to sell with a wide miss in earnings on Tuesday. Were the analysts right? It looked that way as the other stalwarts were taken down on large volume Wednesday. But did TripAdvisor's (TRIP) earnings report truly tell the story? We wrote about it quickly in our chatroom on Thursday that the results from TripAdvisors(TRIP) painted a story about the companies strategy and was not a true reflection of the online travel business.
Those thoughts were confirmed when Expedia(EXPE) posted a large beat in earnings after-hours thursday. The stock surged over 14% after hours. One would think this will translate into a large move in Priceline.com(PCLN) tomorrow, as the analysts and traders start jumping back in on a missed trade.
With Priceline.com (PCLN) earnings not slated until August 7th, there will be plenty of time to position for a move into the $800s. More to come on the Online Travel Sector in the next few days.
This post is available to all members of the site, including Bronze (i.e. "free") members. Please sign in or sign up now FREE to view the rest of this post and watch the HD video. Please find the video at the bottom of the post!
Priceline.com (NASDAQ: PCLN) is an American company and a commercial website that helps users obtain discount rates for travel-related purchases such as airline tickets and hotel stays. The company is not a direct supplier of these services; instead it facilitates the provision of travel services by its suppliers to its customers. It is headquartered in Norwalk, Connecticut, United States.
Priceline was the brainchild of digital entrepreneurJay S. Walker. The company's origins were closely tied with Walker's company Walker Digital. Hong Kong company Cheung Kong Holdings later purchased a significant portion of Priceline's stock.
Hope everyone had a great holiday – now back onto business. Yesterday was the 4th of July today is National Intervention day. UK announced another round of QE as expected. Last vote was 5-4 against, but now UK needed to take action.
China reduced it’s lending and deposit rates again, the 2nd time in a month.
And finally the ECB lowered its rates to a record low of .75%.
LIke i keep saying, $SPY should be over $145 by now based on the US numbers, so this added intervention will help fuel the summer rally.
Buy the dips here IMHO -
More of the same for today on the watchlist as growth stocks will lead this charge IMHO ~
PCLN, LNKD, ISRG all look good.
AAPL breakin $600 PM here, maybe looking for $620 very quickly so $610 calls could be a nice flip.
SHLD – still on this one this week. Have $65s, 62.50s maybe a nice lotto @ .31 as this POS will start to get some legs here.
Earnings season next week, so will have some plays to grab before the weekend for the hype ~
Lets have another great trading day and remember, dont fight the tape!
- jimmy