EBAY @ $109 has the Best-looking chart since Nov 02

Discussion in 'Trading' started by running_bare, Jul 2, 2003.

  1. very little deep retracements, above 50 DMA, RSI > 50.

    BTW, where's the wise-ass from an old 'Shorting EBAY' thread (when EBAY was ~ $95) who said "I'll have my market order ready to short at $99". LOL

    Just shows some people let their 'rational' FA (citing 'overvaluation' - as if we didn't know, LOL) over-rule the technicals.
    Lesson: don't short on valuation grounds alone.

    If you're shorting EBAY better have some stop-losses... all-time high acting as a magnet is just ahead...
  2. Definitely a strong stock. But the trading today looks like a blowoff top....not that I would short it. :D
  3. I am the number one EBAY bull on ET and had a lot of fun with the shorts on the shorting ebay thread. No doubt some of them made money as the stock has gyrated a little. But the wind is definitely behind this name. It is the best business model in the hottest sector. It is huge and will soon be as huge as MrMarket. Every growth fund has to have an above market weighting, so anytime they get money they have to keep buying, price be damned.

    It is also a great daytrading stock, as it is deep and one of the few $100 names on nasdaq. Why trade the q's when you can trade this hot rod?

    As much as I respect this stock, I have to say it is looking toppy. It could easily spike another 8 or 10 points, but don't be late to exit.

    The management is dubious in my judgment. The ceo was one of the big players in the Goldman IPO spinning scandal. They have a nearly out of control options culture as well. Basically it is a story of a great business model run by typical corporate hogs. You could pick a couple of ET members at random to run this company and no one would know the difference. In fact, it might do better.
  4. Camaguey


    I'm one of the wise asses who boasted a short bid at $99 (cover at $101). HOWEVER, I stopped and realized that technically there was ABSOLUTELY NO REASON to go short! This was a purely discressionary trade, having nothing to do w/ a tried and true trade strategy.

    Lessons learned:

    1) Never short stocks above the 30 MA if you're trading dailies. Wait for a breakdown w/ volume.

    2) When going short in a rising market, you should ask, "is this the best short out there?"

    3) 100 is a big round number. There are lots of round numbers out there.

    So I shorted MSO instead which was a lot more like shooting fish in a barrel... (CEO going to jail, combined w/ a fast drop blasting through the averages, followed by a quick throwback was a better bet).
  5. as long as the news of their expansion into Japan, then there will probably continue to be fundamental support for this stock...

    also, with their expansion into Japan, and their high acceptance rate to all things internet, this will probably be their killer customer application....