Talking Price on Social Stocks

These notes are part of my risk management and my assessment of price action.  This analysis is huge in my opinion and significant even if you are trading a larger thesis.  My main thesis continues to focus on companies whose product integrates well with Facebook and Twitter and promotes the new social fabric.  If you find this type of information boring or useless I understand, but it fits my trading situation.  However, I will trim and prune the positions using the following parameters:

LNKD broke out of a month long consolidation on killer earnings.  Today’s selloff certainly seems overdone.  I expect to see buyers continue their campaign in the name tomorrow.  The past resistance near $110.00 could certainly behave as support now and I’m eager to buy any strength down here.  However, I dread a reentry into the previous range and consider ~$107.50 where I lose interest and sell the name, short term.

TRIP was a buy into the close today and is of interest to me on any strength tomorrow.  The stock could receive some pin action from the PCLN earnings due out later this week.  I consider $38.33 significant and expect the area to behave as support.

P is catatonic and attempting to bore all speculators to death.  Beware.  The stock was oversold, but is yet to see any significant snap back action and is instead frustratingly flat.  Many traders want to see it trade into the $10.00 region and I consider ~$10.14 where I will take my first scale should we see upward price movement.  I’m willing to stay long the name as cheap as $7.54.  Beyond that price it could become an even bigger bargain, but I will watch from the sidelines.

YELP is range bound with s slightly bearish bias.  It’s bracketed between $23.50 to the upside and $20.50 below.  Watch the markets behavior at these goalposts for insight into future direction.  I love the product and name.  But I would consider getting lighter in the name around $24 if the upward momentum continues to wane and would certainly take profits at a second visit to ~$30.

NFLX needs a higher low badly.  Not quite as oversold as it was back on 05/02 and still demonstrating bearish tendencies.  I’m not trying to get cute on this one and will cut it below $71.15.

Z looks great.  Not adding at the levels but watching for continued strength.  Price may hang out between 41 and 37 for a bit but exhibiting excellent strength.

PCLN started looking bearish after a strong morning.  I’ll cut below $733.

ZNGA oversold, churning.  Seems to be attracting buyers anytime it breaches $8.  Could go either way.

GSVC needs to hold $18.25 otherwise we could see it trade down to high $16’s again.

UPS looks bearish with a series of lower high lower lows.  Be very patient building into this name.  Not interested in any more purchases unless strength seen below $76.75

I know these thoughts are fragmented, but they will keep me on track this week.  Happy trading gents!

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