Priceline.com (PCLN) is showing some decent strength here, although the close is more important than the intraday price. This is a 50/50 ball at this point - so not my type of odds. Plus risk is "on" today as seen by the moves in commodity stocks; and Priceline is one of those hedge fund dominated stocks - risk on, risk off blah blah blah. Since the stock does not seem to care about "resistance" at both the 50/200 day moving averages and the S&P 500 has a potential for an extra 20-25 points before hitting the next level the bears will show up, the stock could continue upward in the near term. I just put this trade on 48 hours ago so I am going to quickly cut it for a 2% loss; it is actually a name like fundamentally so you are always torn when you have a short side set up on the technical side with a company whose business you like. Remember, PCLN has massive business in Europe so any thought process that Europe is recovering or at least not falling off a cliff (which the Euro seems to be showing) would be a big benefit to this company.
Of course if the market begins a selloff next week, and the S&P 500 falls below 1070 and stays there, in the "student body left" environment, PCLN will fall right along with it. Just too early to tell right now.
Friday, July 9, 2010
Bookkeeping: Covering Priceline.com (PCLN) Short
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows