Expedia (EXPE) or Priceline (PCLN)? Do you really not know the answer to that question? Really? (September 10, 2014)
EXPE PCLN EXPE PCLN EXPE PCLN EXPE
We’re looking at Expedia ( NASDAQ:EXPE ) here. Unlike Priceline ( NASDAQ:PCLN ), which has been like a real dog with fleas, Expedia ( NASDAQ:EXPE ) has not really been a dog. What I’m saying here is, Expedia ( NASDAQ:EXPE ) has just been trading sideways and it’s within a really nice uptrend. This has been a nice little bowl here, this doesn’t quite conform technically to the “true” cup and handle, because it just doesn’t, but it’s pretty close. After this cup and handle the stock is in a nice uptrend, but it’s also consolidating.
So why am I pointing this out? I’m pointing this out because what’s most important to me on any chart is what’s over to the right, because all this is history, I can be an amazingly good technical analyst and look at this chart and tell you exactly where you should have bought. You should have sold right up here, you should have bought here, and you get my point. This is all in the past, you can’t do anything about that, what you have to do is look at the past trading here and use this, use your knowledge of crowd behavior and from that make your judgment.
How do you think the stock is going to trade in the future based on how the actions of traders have pushed the stock around, and how the movements of the stock, and listen to me I giving you pearls, how the movements of the stock have impacted the financial fortunes and hence the emotions of these same traders? If you can figure out that, and rewind the video if you don’t exactly know what I just said, because I know I said it correctly; if you can figure that out you’ve got a pretty good shot at knowing whether the stock’s going to do this or that.
And you’ve also got an ability to put various conditions on your assessment, such as, if the stock falls below a certain level or if it rises above a certain level then traders are going to be thinking this, traders are going to be thinking that. And they’re probably going to be doing this or they’re probably going to be doing that. In a nutshell, frankly that’s technical analysis, everything else is nuisance and there’s a boatload of nuisances.
Anyway, my assessment of Expedia ( NASDAQ:EXPE ) is, that it’s continuing to go higher and I think it’s a buying opportunity, how’s that for a trade? It’s pretty basic, I think this is a buying opportunity, I see Expedia ( NASDAQ:EXPE ) within a sustainable uptrend and from a performance standpoint, I see it beating Priceline ( NASDAQ:PCLN ). I think Expedia ( NASDAQ:EXPE ) has a better business model than Priceline ( NASDAQ:PCLN ), as long as Priceline ( NASDAQ:PCLN ) was consolidating like this and starting to move up, I really liked Priceline ( NASDAQ:PCLN ); now I really don’t, I like Expedia ( NASDAQ:EXPE ).
So I think this stock moves, I think it’s probably going sideways a little more, but I would want to use this consolidation as an opportunity to buy, because it just seems to me as I look at the weekly chart, the way this thing is trading, again, sideways consolidation compare it to the Bollinger Band, sideways consolidation. It looks to me like once the stock starts drifting up a little bit, $100.00 is probably a pretty good target, a pretty good target based on pure math. If you slide the chart over enough, you’re not going to make it right away, but I think ultimately it’s going to.
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