Monday, November 18, 2013


Coming off of last week, I did a post or two about $FB and $LNG. I was fairly bullish on $FB. It failed to break out of the falling wedge and today, it is reacting very negative to that.  Here are some of my thoughts.

After hitting the top rail of the wedge, we are seeing a big sell off. The indexes are hitting record highs, and those pesky round numbers.  The $SPX isn't quite sure what to do with 1800 right now and is wavering back and forth around it. Personally, this lack of conviction is a bearish signal to me. I think it will eventually succumb to the sellers and take the slight dip everyone wants to happen.  And $FB will go with it.  I am looking for it to head back down to the lower rail. Maybe hitting some support at 45.6.  That would be a good spot to take some off. If it falls lower, the bottom rail would be the cover.

I didn't watch much of this last week because, quite frankly, it was boring.  It didnt move much and consolidating after breaking above the top rail of the falling wedge.  I think it is going to want to back-test to that rail again. If it holdsabout 519.50 with volume conviction, then it might be a good place to add some long. Otherwise, if it breaks back into the wedge, support will be broken and I would play a short via puts down to $500/ 50d sma.

All this considered is dependent on how the indexes handle these new highs.  A short dip would give a good chance to get long these names at their supports.

Happy Trading!

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