$EXPE PEG and Cup With Handle BreakoutI've put relevant notations on the chart. I'm putting this on my action list for next week. Many ways to play this one. If it opens in the upper wick that's strong. If that's the case I may go long with a stop below the day low or open. I may wait for a pullback but look for the gap to hold. It could also flag here for a few days or weeks. Either way this should be on your watch list. Ideas, not investing / trading advice.
As a side note there are quite few gappers this week worthy of a watch list such as $GDYN, $SYNA, $LYV, $PFE, $GT, $TGI and $BA which I've posted an idea on.This list is only a few, it's been a great week for many stocks breaking out.
EXPE trade ideas
$EXPE Expedia LT Bull Flag$EXPE Expedia - Long term bull flag on the weekly chart, appears to be holding $160 support from Jul'17. Once we see a weekly close over $180, the move to $200 will likely be swift.
Unusual Bullish Options Activity Today:
$18.5M of November $165 calls traded (62X open interest)
$9.0M of October $160 calls traded (19X open interest)
Medium term target: $200-$215 range by December
Note: This is NOT investment advice. Educational only.
EXPE Worth Watching for a BreakoutEXPE starting to get real tights on the daily and setting up to breakout. I think its worth a watch towards the upside as a re-opening trade.
If it breaks out towards the upside I don't see a reason why it won't test highs and possibly continue running.
IF it breaks lower I see it fall back down towards $153 level.
July 16th or later Call options is what I would take on the breakout.
EXPE on pent up demandSimilar to our play on WYNN this EXPE long is on the notion that people are chomping at the bit to get out and travel.
It's better a better play than that airlines as these booking systems use technology and cover more than just air travel.
MACD looks splendid!
R isn't the best on this initial set-up but we will set an alert and move it higher if it starts going our way.
Definitely a long term weekly chart play here.
EXPE , Short Reasons for short :
-I believe EXPE will underpreform it's peers ( BKNG and TCOM ) . I have compared the three and EXPE has the worst fundamental metrics ( BKNG and TCOM look good ) .
-Forward P/E of 228.7
-Price to book is 12.18, high
-Although with a quick ratio of 1.20, they have cash to meet short term debt payments , EXPE Debt over equity at 5.41 is still bad , especially compared to industry peers. For example, to give you a comparison TCOM D/E is 0.67 and BKNG D/E is 2.4
-EXPE also has the worst margins of the three (BKNG is the winner there)
-High short float at 11%.
I think a good way to trade this, while reducing market exposure, is to short EXPE and long TCOM with equal position sizing per side . BKNG is good too but needs to come down some before I personally would enter , whereas TCOM and EXPE are near entry points .
Good luck ~