Priceline And Expedia Have Hit Their Tops
Priceline.com Inc (NASDAQ: PCLN) and Expedia Inc (NASDAQ: EXPE) have topped out. These will see at least a 10% pull back in the coming months as reality sets back in. Just last week, Priceline reported earnings that beat expectations on both earnings and revenue. However, they warned for the coming quarter. The market initially ignored the warning, sending shares as high as $1,333.12. Reality is now setting in.
1. The stock opened sharply higher after earnings and fell the rest of the day, barely squeaking out a gain following earnings.
2. Today, the markets are having a solid rally with the Dow Jones Industrial Average higher by over 150 points. However, Priceline is barely positive. This shows relative weakness and should spell significant downside on any market pull back.
3. Sister company Expedia shot higher in early trading this past Friday. By the end of the day there was classic topping tail, a major bearish signal. Today, the stock is red on a green day.
Ultimately, these stocks are run too far, too fast. They will pull back and I have shorted Priceline (PCLN). Enjoy and profit.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.