optionmaster1: "i agree that FB earnings are relevant in the short-term."
Yes, only for about 30 minutes after the open this Thursday. After that AMZN will be on her own.
I'm a short-term option trader. I have no idea where AAPL may be in a few months. $150 seems possible while $90 seems possible, too. I was hoping AAPL will test $127.00 this week. She still may, but today's action was so heavy I gave up and sold all AAPL calls I had held for about three hours today.
Admittedly, shorts have been absolutely destroyed, most been squeezed out in the runnup before July 23, and then they cleaned out the rest. So the stock can not rely on shorts for ammunition. At this point it seems many late-coming long investors could be very vulnerable, and the manipulators could just easily turn around to rub them; a sudden 20 point down day seems a possible and an easier way to make manipulators more money.
I did. Made 500 K on this deal. Will come back at my point.
Sentiment: Strong Buy
i agree that FB earnings are relevant in the short-term. There is a substantial possibility of another push to pressure shorts in these stocks to cover later this week. However, I think the writing is on the wall medium-term. Any big money that wanted in on any of these high-flying stocks (FB, AMZN, NFLX) has already been in for awhile. The trading action in AMZN and NFLX after their earnings bumps indicates that there isn't enough new money coming in to balance the profit-taking. If the market in general strengthens then the squeeze could continue longer, but if the market in general is volatile or weak then profit-taking will continue to be the dominant force.
Pause at the 50% retracement after jumping to $580 from $480. Now it is a little bit tricky. It all depends on FB earnings on Wednesday. Can go either way.
Looks like it is back down to the low end of its new trading range (525 - 560) now.
Sentiment: Strong Buy
blust35442: "But you said you would wait until Friday (10:03am ET)."
The calls I bought didn't appreciate at all when AAPL hit an afternoon high (~123.50). There was no reason to hold those calls anymore. (They seem to be overvalued to start with.) Unlike shorts here, I don't wait for miracles. AAPL may hit 127 tomorrow, but that's like a miracle at this point.
That is why you need to long AMZN. Bezos is the only CEO who knows how to squeeze the shorts because he used to a fund manager working at Wall Street. Bezos' every announcement and move are well calculated. His goal is always to cause short squeeze.
Yep. Lots of people absolutely lost their #$%$ last week, especially the shorts not to mention those that feared earnings and closed their long positions the day before the release.