$22 Billion market cap for Linked-In and despite its massive growth, investors buying the stock all the way up look like they are selling. This bounce that LNKD is in now could extend longer in price and time, but this is a decent enough level to begin to take a position around the 219-220 area. The last rally was a little over 30 points and if we assume it has another 30 point rally, then a move up to 233 would be possible to mimic it.
There appears to be a cluster of time and volume at the 220-222 area to give LNKD enough of a chance for those "buy the dips" owners of LNKD to get out at "break-even" after suffering a 10% loss at the lows here in January.
I don't want to fight this stock for long since it is in a volatile, high growth sector that is profitable (unlike Best Buy - not high growth and not very profitable), but it looks like we can piggy-back the sellers and go for a short sale up here against this resistance and look for at least a test, if not a break, of the January lows.
Cheers,
Tim 1:41PM EST Friday, January 10, 2014
Comments
FrancisKim1
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LNKD will double by the end of the year.
timwest
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What are the parameters that go along with that forecast? How much do you need to risk to earn that return? How will you exit and do you buy more along the way? And if so, what parameters once you change your position size? Just questions to stoke a reply from you. Thanks in advance. I hope we can define anything that moves in the market - or better yet - define something that wont move and make money on that forecast too. I have some great ways to make money on markets that don't move much.
huntingsniper
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Great call! I am impressed by your chart and analysis! I am particularly impressed by your guts for shorting this once strong stock and your endurance when facing the "vicious " spike on Jan 16.
timwest
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Thanks for the feedback. There are some good fundamental analysts pointing out some negative factors about the actual LinkedIn user base and questioning both the number and the value of the members. Since LNKD had a bad chart and some looming negatives, it was a tad less-stressful than it looked. Thanks again!
timwest
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After FB's huge move, I am a bit shy to re-establish my short here in LNKD despite my opinion about the value of LNKD relative to other social/business media sites. 217.73 last +5.47 today, Jan 31, 2014
timwest
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I'm going to cover my LNKD position here and will look for another entry point. 204.28 last. 2:48PM EST 1/29/2014
timwest
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The spikes are vicious in LNKD, but fortunately the stop wasn't hit. The red line I drew on the chart was touched, but it didn't hit my stop loss. Now that LNKD has fallen to 205 today, I'm thinking about covering half and re-shorting at 215. Ok trade so far. The initial pain was equalized by the current drop, so the pain = gain. I usually prefer a little pain in a trade because technical analysis and trading is not an exact science. It's the science of art. 11:19AM EST, Monday, Jan 27, 2014 LNKD 209.86 last
jingzhou5f
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im looking to open a short pos @222ish to min risk.
target sub 200 (10%)
thx for the input tim
timwest
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The red lines are my projected price paths for the stock - one ideal and one less-than-ideal. I forgot to add a "target box" on the chart also.