Did you catch the two price alerts on SalesForce.com (CRM) today? Both were money makers. Here’s why. (April 29, 2015)

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I want to look at CRM, Salesforce ( NYSE:CRM ). There’s a rumor, obviously it’s kind of a substantial rumor, that they’re exploring avenues to field a buyout offer. Somebody’s trying to acquire them and for the stock to trade like this and close up as high as it is, even higher after hours there’s probably something to it.

The reason I’m pointing this out is, first of all: if you’re short this stock you better be covering, because the acquisition is not going to be lower. If there is an offer it isn’t going to be at 72.00. Who would do that? It would be even higher, so the only reason the stock is trading here now is because there’s some uncertainty as far as whether they are actually going to be taken out, so this is a pretty risky thing here.

But frankly the reason I’m talking about this is because I want to tout “Stock Market Mentors” alert format. Just a while ago, I think it was on the 23rd, I was covering Salesforce ( NYSE:CRM ) and I said that I don’t know anything about a buyout. Although I think that I actually mentioned that there were some rumors but that I didn’t know anything about it. Even though I didn’t know anything about it I looked at the chart and the chart looked really solid. You can check that out on the website, just go to the “Free Chart Video” section, this will help you in your own trading.

But I liked the pattern; and so my suggestion was set an alert at like $66.00. If the stock pulls back to $66.00 that’s a good pullback buy, that’s a good low risk time to buy the stock. The last couple times it was here it bounced. So you like the pattern; it’s a nice symmetrical triangle as opposed to a not so nice one, maybe it’s rude or something. But it’s a nice symmetrical triangle, with support at $66.00.

So if the stock pulls back that’s when you want to buy the stock. But on the other hand, if the stock breaks out say above $70.00, then this triangle is going to be complete and you’re probably going to get much higher prices. Well look what happened today; yesterday the stock didn’t go down to $66.00, the low was 66.57. Today the stock gapped down in the morning, it traded as low as 65.89 triggering that price alert that sent the video out, just that portion of the video that tells you what my thesis is on this stock.

From what I can see in the forum and a couple emails I got, some of you guys bought on that low alert. When the stock gapped down and then was trading back above you said, “Hey, I’m in, this is the low risk entry that Dan was talking about. So I buy with a little tight stop right there and now I’m looking at a symmetrical triangle that I’m buying at the bottom, that may have a decent chance of breaking out, I just don’t know when.” So that was this morning, right?

Then sure enough the stock pushes up above 70.00; you get a different price alert but the same video. So you’re looking at that video and you say, wait a minute, Dan’s saying that if the stock breaks above 70.00, and guys this isn’t me being super trader I just know patterns. I’ve read all the books multiple times and been doing this for close to twenty years, I know what a symmetrical triangle looks like and I know what a volatility squeeze looks like; this is not rocket science trust me.

So then there are others that bought at 70.00, some bought at both. The point is, you can use these price alerts to make money. You’re not going to make money on every price alert because they’re not the same as buy alerts, they’re analysis alerts basically. They’re analysis alerts to where something happens on a chart that I was looking at a particular price level that says if this, then look for such and such.

Sometimes you’re going to get a price alert and say, “Oh, okay, I see why the alert got triggered but no, that’s not what I’m looking at.” But every once in a while we get a good one. Here we got two good ones. So I want you to really pay attention to these members. When you get a price alert if at all possible open that alert, listen to the video, watch the video, it will be super short because it’s just on that thing. You’re not going to get this on any other website, because it’s patented, we’re the only guys that can do it without violating our patent.

What am I expecting from Salesforce ( NYSE:CRM ) going forward? I think it’s going even higher. The real interesting thing is that Oracle ( NYSE:ORCL ) is seen as being a potential acquirer because they haven’t really, frankly, done anything original in quite a while and so they’re looking to get in to that space. The stock is actually trading up, not a lot, but it’s trading up after hours.

So you can’t really look at this and say, “Well if Oracle ( NYSE:ORCL ) did acquire Salesforce ( NYSE:CRM ),” whatever the price is, is going to dictate what happens here.” But if the market deems that Oracle’s ( NYSE:ORCL ) getting a fair value, assuming it does buy it, for Salesforce ( NYSE:CRM ) you’re probably going to see Oracle ( NYSE:ORCL ) move higher. It has been consolidating in a fairly tight range for a while, it’s coming out of a volatility squeeze.

But fair warning, I am long Oracle ( NYSE:ORCL ) calls, I don’t own that big a position but I own some Oracle ( NYSE:ORCL ) calls, and I have never in the history of my trading career made money on Oracle ( NYSE:ORCL ). I am up 17 percent on these calls and I am not selling them yet. You may choose to fade my trade just because I’m batting a thousand at losing. On the other hand I may just close out Oracle ( NYSE:ORCL ) tomorrow, I’ll let you know in the forum. And then once I say I’m out with a profit then you can get in and watch Oracle ( NYSE:ORCL ) go to 50.00.

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