Trading The Expedia Divergence
Monday, October 18, 2010 at 11:42AM
Michael Bigger

Written by Michael Bigger. Follow me on Twitter and StockTwits. 

 

Early Tuesday afternoon, I had the following exchange about Expedia ($EXPE) on Twitter:

  

 

 

$EXPE was down $1 on the day when I bought it. At the same time, $AMZN and $GOOG were up sharply.

 

 

 

Do you see the divergence pattern here? Our expectation was for $EXPE to rally after the seller was done dumping the stock. This happened at around 2pm. We unwound our position late in the day for a profit.

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