Where is cash flowing in the huge travel industry? One of the doors most travelers are now entering is PriceLine.com to get the best deal. Once again this monster stock is not hiding under a rock, William Shatner’s Price Line Negotiator commercials have really made this company memorable.

However it was not the commercials or even the earnings that made this one jump on to my radar, it was the chart. Which of course everyone is going to think is over bought. Not me, I trade in the clouds, I like a stock when everyone holding it has made money and the earnings expectations are growing.

With 18 days above the 5 day exponential moving average before finally losing it yesterday. A run up into earnings, and then an explosion after earnings that held up in a nice $650/$626  Darvas Box I am having DeJa’ Vu all over again.  Price Line really looks like the Apple chart BEFORE the final 90 point run from $455 to $546. The biggest determinant of where we go from here will also be whether yesterday was just a hiccup or the first warning of a real correction and down trend. Today snapped back very well and gave me the confidence to like what I see and get back into my Price Line option and see if it had legs.

The fundamentals may inspire p/e expansion and bring professionals in to snatch it up to pursue growth in earnings.

——————————PCLN       AAPL
P/E                                    28              16
Last Qtr EPS               +58%      +116%
Last Qtr Sales            +35%      +73%
Return on equity        32%         42%
Qtrs EPS >15%             23               9

Price Line is Ranked #12 in Investor’s Business Daily’s top 50 stocks. This is one of the best momentum stocks in the market right now. We could have a runner with this one.   Of course I may be right or I may be wrong, I will be trailing this stock at the 5 day ema and only risking 1% of my account to try to make a 3% return. Good luck to you all.



By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.