Sometimes you just want to squeeze someone’s face. Today, let’s squeeze facebook (FB). (August 29, 2016)
FB
I want to look a Facebook ( NASDAQ:FB ) today. The stock gapped up big time on really nice earnings a month ago. Since that time it hasn’t come anywhere NEAR that opening print, which often happens, kind of like it’s done here and various other times in the past. The point is, since that time, this stock has been just trending sideways in an ever narrowing range. The reason I’m mentioning it today is, 2 days on a very low volume market, 2 days where the stock has traded higher and it’s been ON volume that has been higher than average by far.
Now you say, “Well what about that line Dan?” Well okay, fine. That’s the average volume over the last 50 days, which includes these big spikes. But if we just simply change this to 10 you see what I’m talking about, much higher volume. And this is the stuff that matters if you’re trading these squeezes. You want to see a volatility CONTRACTION, fewer big swings, tighter and tighter ranges on light volume. The light volume tells you that there’s kind of like nothing really happening here. NOTHING TO SEE HE, move on. And then suddenly volume picks up, the stock starts moving, that happens in sync and then more and more folks, like me, start looking at the stock saying, “Oh gosh! Facebook ( NASDAQ:FB ) is on the move, got to get in.” So what am I saying to you? Facebook ( NASDAQ:FB ) is on the move, got to get in.
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