This is the front page of CNBC right now, sheer panic over Facebook.
You’d have to be a complete idiot to fade the market because Facebook is under criticism for having too much power. Once again, the company is growing fast and nets $4b per quarter. Whatever politicians want to throw at FB, they can handle it. At the end of the day, government’s need Facebook to be cooperate and do not want to piss them off too much. They simply want to ring-fence their power and try to use this latest non-crisis via the news to pressure them to bend the knee. When it’s all said and done, it will have no material impact on the bottom line.
Markets are strong at the open, but somewhat flaccid. It’s also possible we’re in a rut, ahead of what could be a third government shut down over the past year. Markets are somewhat milquetoast, susceptible to decline over the smallest of reasons. Perhaps the Facebook induced panic is more of a symptom than a cause?
Either way, until we get some follow through on the downside, I am bullish on dips — the deeper the better.
I have lots of cash following my LABD and SOXS sales and will deploy it into upwards momentum only. Downside dips will be bought on Exodus oversold signals only.If you enjoy the content at iBankCoin, please follow us on Twitter