The Decision-Action Plan executed well for Facebook (FB). Here’s your trade. (June 28, 2017)
FB
I thought I would show you Facebook ( NASDAQ:FB ) because it is such a widely watched stock. I mentioned in our Strategy Session that I had actually been considering buying this stock on Monday, for a longer-term account. I could see this, I knew it wasn’t the best entry because it is right up here at resistance. But I thought, “You know what? It is going to be for a long-term hold. I don’t own any, so I might as well take some.” The market opens up higher, “I thought, no, I am not going to this on a breakout because lately, frankly, breakouts have been stinking. They have been sucking people’s money away from them.” So I just delayed, and delayed, and then finally this morning I took some.
My point for saying this is, this is a good time to be buying this stock. Not as good as it was several years ago when the stock bottomed out; but the company reports earnings in a month. This thing has a month to move, a month. That is a long time, particularly since the stock essentially has been consolidating for about two months. So, I would buy some stock here, and then if the stock starts moving up say to 157.00, then you add to that position. Now you have got a stock, on a breakout, where your cost basis is back in kind of the middle of the range; where you bought here closer to support, and then you bought the breakout. So you have kind of split the difference, you are working on a profit. Then the only way you are going to lose money is if the stock not just falls back into the middle part of the cluster here, but also all the way down the bottom
This is a good time to buy Facebook ( NASDAQ:FB ). Definitely consider doing that, ‘Friend’ the stock as I say.
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