If you think this is a "Sell", then you are a meatball. Going to $150. Better cover your short now.
Going long PANW on this stock pull back, but would consider buying CHKP in the low $70's.
It's still going up! I guess overbought is a relative thing. If I buy at these levels, I am certain there will be a pullback. I think I'll still wait and hope for mid-70's.
I used to subscribe to IBD. The problem with 99 rated stocks is that ALL of the good news is already baked into the share price. IBD doesn't tell you who the next good stock will be. They can only tell you who has performed great right now. And as they say, past performance does not guarantee future returns.
The story said it was VDSI that was being bought by mutual funds, not CYBR. Even if it was true, most mutual funds would not buy something with as small of a float as CYBR. It would be too difficult to later sell the shares once the mania is over.
This is being pumped up for the secondary offering dump. And the float has turned over 2x already in the last week. It's like a bunch of hedgies are taking turns selling it to each other. I'm not short here so save your stupid comments, but if you are long, you are kidding yourself if you think this parabolic move is going to $130. As soon as enough retails are in this, the hedge funds will be dropping the bomb. Been there; done that.
@dalongdude -- He's being sarcastic! There are companies on Shark Tank that are making as much in revenue as CYBR.
So Cramer was hyping this stock based on these numbers? PPS is 180x 2014 revenue? Even at $30 this stock is still 90x last year's revenue. It needs to grow revenue by 20x just to be rationally priced.
I looked at the chart of PANW. I never saw it go parabolic over a 2 week period like this has. This stock is up 90% since then. Parabolic usually swings back pretty hard the other way. Not to say it won't eventually go up to $130, but I don't think it's straight up.
This is hard to trade from the short side because my brokerage will not allow me to short securities/ETFs under $5.00. And there are no put options on it as well. You can short other short ETFS like VXX or buy put options on those. I have traded TVIX from the long side, but since it is down more than up, it is a losing bet if you are looking to buy and hold it. It is leveraged also, so the more frequently it goes down, the effect is cumulative, almost like compounding. When it does go up and you catch it, you feel like you've won the lottery -- which in effect you have.
I think there are some other factors, but I think your theory makes a lot of sense. The one thing that bothers me is the volatility of the major indices (not the VIX per se) in terms of these rapid up/down cycles which would not give the mom and pop investor the confidence to buy. Unless you are a daily trader/observer, you will be continuously whip-sawed (and that's happened to me lately and I do trade with frequency. I'm about ready to get out for a while because everything seems topsy-turvy to me.
It's not so much as why the run up, but why has it been bouncing up and down since October? I know the bounce in oil prices has been a driver, but I also think some options players might be part of the equation. In all, your guess is as good as anyone's.
You're absolutely right about the positive correlation between oil prices and the stock market. With that type of connection, you would think the stock market would have had a much bigger correction as oil plummeted last year. This week, the market's bounce was on low volume, indicating that it may be the effect of open options, high frequency trading or some other factor. At this point, it just seems like forces are at work to keep this market up. Several years ago, the whole Greece default thing threw the market into a tail-spin and the VIX spiked. Now barely a blip. I'm not sure what to make of all this indifference to negative news. Maybe the US economy has become uncoupled from the rest of the world.
Good comment. Along those lines, what do you make of the market moving in the same direction as oil prices? Once again, falling oil prices used to be a positive for the market because it helped to lower manufacturing and transportation costs. Of course, we used to be a manufacturing-based economy and now we are service-based. Also, a rising dollar was a negative for the market since it made the cost of US stocks more expensive for foreign investors. It seems contrary to the way the stock market used to behave.