Priceline (PCLN) is a $1,000.00 stock. Who woulda thunk it?
I know lots of people who thought the stock was overvalued at $100/share.
At $300 it was “just a matter of time” before it crashed. A good friend lost tens of thousands of dollars trying to short the stock at those levels ($300-$400) using Elliott Wave principles.
It drove him out of trading.
There’s a lesson in this… and though you’ve heard it here before if nowhere else, you can never hear it too frequently…
Price is never too high to go higher…
and never too low to go lower (as long as it’s above zero of course).
Market timing isn’t impossible (a double negative I know, but useful in this context as it means it IS possible)… but doing it perfectly is improbable.
That’s where having solid price action driven principles underlying your trading makes all the difference in the world.
This is neither an endorsement, nor a denigration of PCLN… just an observation.