Facebook (FB) has given us a new support level to use as a reference for stops. Are you long? (December 18, 2012)
FB
I’m Dan Fitzpatrick at sStockMarketMentor.com on Tuesday, December 18th. We’ve been looking at Facebook ( $FB Facebook Inc ); I’m just going to check it out one more time, because I think it’s at a key inflection point. I have been talking about how the lock-up expired last week, the stock sold off on Friday, for some silly reason I continue to have a pretty big options position in this stock; and then as the stock went down yesterday I thought, Okay, well I’m probably the dumbest guy around. Now it’s not looking quite that bad, we’re actually doing pretty well on this one; but here’s the thing, this is a good time, actually, to be buying into this stock, because of Monday’s trading action; the low was $26.32, which allows you to do this, you can buy the stock now, $27.71, or buy calls on it, whatever, and as long as the stock stays about $26.32 this is going to be a money maker for you because ultimately this consolidation here, I think, is going to lead to an upside resolution, stocks going to move out into earnings next month. So what I would suggest doing is zoom out, look at the stock this way, look at the chart this way, and you’ll see one big, long consolidation for a few weeks, like this, watch for an upside breakout, and keep your stop right about there, and that’s about it. Okay members, a lot of our stocks are doing pretty well, so let’s get over to the Strategy Session and check those out. Also, one thing, I’m teaching an options workshop next month, so I want you to watch for that, it’s going to be a lot of fun, I’m actually going to be teaching an additional one in February too, but you’ll get more news on that later. Right now I’m looking forward to teaching this option workshop in early January, I hope you’ll check that out because I know that I’m going to help you make money, and isn’t that, really, what it’s all about? Free Chart