Schaeffer's Trading Floor Blog

Highs & Lows: Expedia, Home Depot, and Alaska Air

EXPE, HD, and ALK soared to new highs

by 11/26/2012 1:30 PM
Stocks quoted in this article:

Although U.S. stocks have bounced from their session lows, anxiety appears to be mounting on Wall Street, as investors consider global economic uncertainty. Against this backdrop, however, the number of equities tagging new highs is easily exceeding those at new lows. The NYSE has counted 62 new acmes and just six bottoms, while the Nasdaq has seen 43 tops and 19 fresh lows. Among the stocks charting notable moves are Expedia Inc (NASDAQ:EXPE - 61.10), The Home Depot, Inc. (NYSE:HD - 64.47), and Alaska Air Group, Inc. (NYSE:ALK - 42.62).

  • What a trip EXPE has enjoyed on the charts lately, rocketing nearly 109% in 2012 and outpacing the broader S&P 500 Index (SPX) by roughly 15 percentage points during the last 60 sessions. In fact, just today, the shares scored a new all-time best of $61.48. In light of this overall uptrend, skeptics have been easing their bearish bets, as short interest depleted by 5% over the past two reporting periods. However, these bearish bets still makes up almost 10% of the EXPE's available float, which could translate into a contrarian tailwind for the online travel site.

  • Dow heavyweight HD is currently trading just below breakeven, but not before the stock touched the $64.89 level -- its loftiest price in over 12 years. From a longer-term perspective, the blue-chip component has added an impressive 54.2% year-to-date; however, this technical feat has yet to fully convince the brokerage bunch. Of the 23 analysts covering the home improvement retailer, 12 consider it a middling "hold." Meanwhile, the average 12-month price target of $67.73 represents a rather slim premium to today's multi-year peak.

  • And we'll wrap things up with another name notching a record best. ALK flew to an all-time high of $42.70 just after midday, adding to its 2012 return of 13.2%, and an even better 38.7% 52-week climb. On a relative-strength basis, the airline operator has outperformed the SPX by more than 26 percentage points during the past three months. Consequently, the stock's Relative Strength Index (RSI) now resides at 73, which is teetering into overbought territory. This suggests that ALK may be ready for a bit of a breather in the near future.

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