It is tough to take much, if any, portfolio inventory into the weekend with the kind of predicament we find ourselves in with this market. The fact that, after all of the selling we have seen in the month of May, we have yet to see a really sharp multi-day bounce remains problematic. Very oversold markets that stay that way are ominous and should be respected.
I see Facebook has tried to stabilize after the initial shenanigans when it opened this morning. As I noted earlier, you should not care one way or the other whether FB doubles today or closes below $38. The more pertinent issue is whether you can define an edge to putting on a trade in the stock. Once again, I believe it is a pure, weekend in Vegas, gamble. If that is what you are looking for, then have at it and good luck. Otherwise, I see no edge and the stock’s price action should be blown off.
The recent string of social media IPO’s may very well present sound opportunities, it’s just that it will take some time for them to back and fill. Once tangible, multi-month technical bases are established in the like of FB LNKD ZNGA, I will take a closer look at them as legitimate trading ideas. Until then, it remains crucial to not let these IPO’s distract you from the fact that this market is unhealthy and needs time to firm up. True, the chances of a sharp snapback rally are rising, but even those are tough to play and can fizzle out rather quickly. A healthy market would be along the lines of a sustained, trending one with meat on the bone for swing traders, like we saw in the first quarter of this year.
On the count of three ,”Say Cheese”.
perfect pic..
😉
LOL
That photo is a complete crack-up! Great choice!
Next to the photo a friend took of a Japanese tourist taking a picture of a plain brick wall, that’s the funniest picture.
My 2 cents is FB is DEFINITELY a buy at $26.60 (30% lower than ipo).
Those bare hands are arousing.
ES near 50% retrace of move off of Nov ’11 lows and is testing Oct ’11 highs.