I shorted ABNB @213 based on fundamentals. The company makes no money, trades with crazy multiples, and has negative cash flow. Given that the market was getting shaky this is exactly the fragility I was looking for in my short. Just by pure luck, it turned out to the top (so far). Looking at the chart now, I also get some inspiration from the technical side. There is a possible H&S with a 140 or so target.
Those earnings are going to make $140 unlikely. Investors will be looking for entries.
roman63rus
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@sparo, maybe, I am 70% comfortable with my short at a year horizon, but there is always 30%.
sparo
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@roman63rus, i think it has broken the h&s, I hope you have the bankroll
roman63rus
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@sparo, Lets see next week. If it closes above the "head", i'll start to worry. Can be "right shoulder" in the making now. Market is fragile, one wrong step and its 160. Or could be 260 of course, in this case, just move to another bet.
sparo
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@roman63rus, The price increases are accompanied by volume and that doesn't suggest a top is near. I don't have any skin in this game but that ER was a big surprise in an industry wrecked by covid