Thursday, July 8, 2010

Bookkeeping: Short Amazon.com (AMZN) and Priceline.com (PCLN)

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I have some high beta on the long side, and I am pairing it with some high beta on the short side now but I am starting small since the market has potential upside to 1095ish.   I am going to begin starter shorts in both Amazon.com (AMZN) and Priceline (PCLN); two companies I actually like fundamentally.   Right now they have broken charts but of course that can change in student body left trading overnight.

Amazon.com is coming into resistance - I debated shorting it yesterday but was hoping for a pop closer to $119... so far it has not come so I am going to start just under $117.  There is a huge gap objective down at $95 but either way I will be out of the way ahead of earnings.



Priceline.com is much more straightforward.  It is converging on both the 50 and 200 day moving averages.  Either it clears them or does not - easy as that.  I could be out of this one in minutes as I won't give it much leeway... maybe $5-$6 ...I'm shorting just under $200.



If these are rejected (which would coincide I assume with S&P 1070 being the top of this bounce in the S&P 500) I will add to the shorts.  If they begin to pop their head over resistance areas, I will be out - hence I am only throwing about 1% into each since I'd rather short stocks closer to S&P 1100.  

These are cautionary, small shorts just to get something on the other side of the book which I evacuated the past 2 weeks.  If the S&P 500 can gain 25 points more or so I'll be much more aggressive adding to the short side.

Short both names mentioned in fund; no personal position

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