Here’s your trade on Meta ($META) – April 28, 2023
Dan Fitzpatrick at StockMarketMentor.com, I’m going to make this quick. Meta ( NASDAQ: META ), is a stock that has really, really jumped. This thing is up, I think, like, over 100 percent this year so far, almost exactly.
The company reported strong earnings, it’s amazing what happens when you ditch so much of the deadwood to reduce your expenses and start focusing on what makes you money. As opposed to some fake universe that maybe everybody wants to be in because they don’t like their current world.
The stock gapped up, it really had a big jump, way above the implied move that the options market had priced in. It really, really ran up there, and then it didn’t pull back much. You’ll notice, I’ve drawn these lines here about how these Bollinger Bands really are expanding, they are exploding away from each other.
What we want to be doing is, we want to be selling the stock, I will let you decide if you want to short it, but we want to be selling the stock when these Bollinger Bands start hooking. In this case, what you would see is, this has moved up, you look at the lower band, and when you see the lower Bollinger Band start to give you this little hook, that is an indication that the move is over.
It doesn’t mean that you are going to get a big reversal, it just means that you are not really going to get any follow-through. So this is what I would do, you want to stay on to this stock, I would not buy it here, not even with your money. But what I would do if I am still long the stock, the low here today is 235.75, but let’s just say it’s 235.00.
Right now the stock is here, you are setting your stop at 235.00, and you are only giving up a little less than 2 percent if you are still holding it here. And in return, you get the chance that the stock is going to make more money. So you are risking 2 percent to hang onto this stock.
Now again, with that said, I wouldn’t own this stock here, I wouldn’t buy it. This video is basically to help anybody who is long the stock and has a real yearning to continue to own Meta ( NASDAQ: META ), I’m helping you get out of the trade because I think you will want to sell into this strength.
And the way you do that, if you are stubborn is, rather than just sell say, Okay, where am I going to put my stop? You can see the weekly chart, it’s had a heck of a “V”, it could certainly go higher, but I would say, maybe let it go higher without me. I will figure out when to get in a little bit later. For now, that’s all I’ve got.
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