Saturday, June 25, 2011
Saturday, June 18, 2011
Monday, June 06, 2011
Sunday, June 05, 2011
Its a bit of a stretch to use a chart that only has 11 trading days of history for technical analysis but LNKD looks bullish to me. If we consider the LNKD IPO price ($45) as the bottom of the flag pole then the pattern fits an almost perfect tight pennant and targets ~$160. It may sound counterintuitive, but the fact that LNKD is such an obvious bubble (using any reasonable valuation metric) makes me even more bullish. It must be full of shorts by now and with its tiny float (50M)the upside could be swift. I wouldn't even remotely think about buying this .com for the long haul but I'd bet it rallies big after the broader market rebounds. Sure, we could very well be entering a new bear market on the S&P but we won't go straight down. At some point we will rebound (probably soon) and LNKD will lead the way up. I've seen it dozens of times (and been burned betting against stocks like this), the most ridiculously overpriced stocks go up the fastest and the most (eg CROX, RACK, DECK, BIDU, NFLX, CRM and so on).
Disclosure: I have no position in LNKD
Monday update: Bought a few front month 85$ calls at the open for a trade.