Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

Is the EBAY BUBBLE about to burst

The building bubble is bursting so why shouldn't EBAY be next. 50 is way to high for a stock with a triple-digit PE ratio that pays no dividends, has no room to grow Investor return on equity. This recovery has no legs.. only weak prostheses.


EBAY showing no resilience today EBAY SEPT 50 puts Those that can't wait to get their gains in EBAY might try for the August 55 puts which should continue to do well for the short term to guard against a possible move up to 55.. The september puts will definitely last quite long and if EBAY moves to just 51, the 50 puts will do fine. The lower EBAY goes, the higher the September puts will move.

I was tempted to put EBAY on the LONGER TERM SHORT LIST during the last 4 sessions but those long tails and tiny bodies (signifying an open and close that are not wide, even though the highs and lows are very wide) kept me away. Now I think we might be safe looking for an EXPE/ROOM kind of move. I dont know or understand why this PIG AMONG PIGS IS STILL trading above 50, but EBAY was very difficult to short in May and June (for swing shorts).. and its only during August that I see our possible bite down.