tale of two idiots...
eBay (NASDAQ:EBAY) StockPickReport.Com Rating: SELL (-8), SHREVEPORT, March 4
eBay operates an online market place through the web site
ebay.com.
Our analysts predict the stock should step sharply lower as
predicted by EBAY's current near-term stochastic analysis.
Incidentally, the stock's closing-price descended into lower ground
over the recent few market sessions as evidenced by the short-term
moving average of it's 15-period closing- price moving average. In
conclusion, EBAY traders should note that the stock's average daily
volume stepped down over the previous week.
In our opinion, StockPickReport.Com research indicates a
"short-sell" strategy (buying puts, selling calls, short-selling, or
outright selling of EBAY) at current levels is the logical move at
this time.
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Bernie Schaeffer and Schaeffer's Investment Research, CINCINNATI, March 4
Online auctioneer eBay (Nasdaq: EBAY) makes a splash on both today's
most-active call and put lists. On the call side, the stock's April 90 strike
has seen volume of 2,808 contracts so far today on open interest of 2,930.
Meanwhile, the March and April 75 puts are also active with volume of 2,875
and 2,853 contracts, respectively. Overall, signs of pessimism continue to
pop up on this relative-strength outperformer. After dropping lower following
February expiration, EBAY's Schaeffer's put/call open interest ratio has begun
to trek higher again. The ratio has jumped from 0.71 to 0.75 during the past
six days as puts are added faster than calls. What's more, short interest
continues to hover near its recent high.
Despite these signs of pessimism, EBAY's technical and fundamental picture
is nothing short of stellar. After breaking above previous resistance at the
70 level in early January, the stock has enjoyed the support of its rising 10-
week moving average. Yesterday saw the shares hit a new annual high of 79.41
before pulling back to support at their rising 10-day trendline. According to
Bloomberg, the company recently announced fourth-quarter earnings that beat
Wall Street's estimate by more than 21 percent. Following this news, the firm
also raised its full-year earnings expectations. Bottom line: look for more
"bids" to drive this auctioneer higher in the near future. |
