Listen up. If we are indeed range bound in the indices this summer the opportunity to swing your bat will be on social stocks. I will hammer this message again and again, because you need to understand the importance of these stocks ripping higher. They are America. They are our latest innovation. Remember everyone talking about our shift away from manufacturing and into service? Well this is the shift’s first major biproduct. A slew of social companies held together by the FB LNKD Twitter ecosystem.
It’s so major we have live coverage trumping the perils of Europe and the other backward hell holes of the world. All eyes on our bell of the ball, dressed to impress. Of course the action in the social space is relatively stronger than the rest of the market. Where else can one speculate on new innovation occurring rapidly? These companies are working. Companies like TRIP, Z, YELP, LNKD, and ZNGA.
Do you think the migration away from computers isn’t a tectonic shift with massive implications? If yes I no longer value your thoughts. Be gone. “$P a broken business model.” That sits like a Christmas fruitcake in my stomach mid-May. Makes me sick you would spit such vile speak. 70% of their traffic is mobile. I say no more.
Watch these indices. They may not give us much more downside. Is FB ripping for a month straight baked into price? The company and its ancillaries are Wallstreet’s chance to cordially invite cash flows back into the game. They’ll pitch the story until they’re pink in their fat crumb spewing faces. Is FB defying gravity all summer cooked into the price of GSVC and SVVC? No. Remember both hold Twitter, a site superior FB.
Should we trade lower, and believe me it could happen: buy the blood. But please, have a plan. Have some risk management Mr. Hero. My chips say long, I retain about 30% cash to employ on weakness, and may raise cash into the weekend. All of this sentiment and more could change literally on a dime, so you know. It’s choppy out there sure, but we could be range low.
PS: FIO is now shitting the bed. Don’t extrapolate this out to the entire space, that chart was getting way ahead of itself to the upside.