Expedia (EXPE) – a buy or a sell? Let’s discuss….
Discussed in this article: Expedia Inc. ( $EXPE )
I want to look at Expedia ( NASDAQ:EXPE ). This is a stock, if you recall; if you were long how could you forget? If you recall the company announced earnings here and this is what happened.
It wasn’t pretty, it was a big, massive gap down, while at the same time Priceline ( NASDAQ:PCLN ) was moving really nicely. So you wanted to be long Priceline ( NASDAQ:PCLN ), if you’re short Expedia ( NASDAQ:EXPE ) that’s fine, but I’m just saying you wanted Priceline ( NASDAQ:PCLN ) over Expedia ( NASDAQ:EXPE ).
Well now what? The company announced earnings aftermarket and here’s where the stock is. It just depends on how you want to analyze gaps; it’s really close to filling this gap completely. You could say, “Well, that’s really where the gap is.” That’s okay, but the way I look at gaps I just want to see pockets of trading, air pockets. We don’t really have that here, we’ve essentially got Expedia ( NASDAQ:EXPE ) trading all the way through this entire range, at one place or another.
So I’m not really so much looking at the gap as I am just the idea that this kind of big move here puts Expedia ( NASDAQ:EXPE ) right to the 200-day moving average, and right into this zone where all of these folks who brought down here are winners, every single one of them are winners. That would implicate to me a strong tendency to take profits, especially with the overall market the way it is now.
So what I would suggest you do is if you’re long Expedia ( NASDAQ:EXPE ) then that’s great, I would suggest selling it into the open, maybe sell half of it into the open, and then if the stock is up at a new intraday high, say by ten o’clock in the morning Eastern time, then you’re going to be glad that you held on to the other half because the stock’s probably going to continue higher than where it opened. But typically a stock that gaps up like this, when it’s below, pretty much near term prior trading activity, it’s likely to move lower as sellers come into the market, sellers that you wouldn’t even really think of. So I would suggest just being careful with Expedia ( NASDAQ:EXPE ).