Facebook is starting to run along the upper Bollinger Band. (September 19, 2012)
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I’m Dan Fitzpatrick at StockMarketMentor.com and now OptionMarketMentor.com, which is open. It’s September 19th; that’s a Tuesday, actually I take that back, it’s a Wednesday. Let’s look at Facebook ( $FB Facebook Inc ). You know this thing had just kept going lower and lower and then look at how these Bollinger Bands, which are essentially measures of volatility, they started squeezing tighter and tighter and then Facebook ( $FB Facebook Inc ) comes up here and I don’t know, I guess it was in response to Zuckerberg talking or showing up and not wearing a hoodie, whatever it was that he did, sounding more confident and like he kind of figures it out, I don’t know, anyway since that time the stock has been trending higher. This I do know, and as long as the stock runs along the upper Bollinger Band this is a stock that you want to own. There is, in my view, a substantial short squeeze going on. There’s a lot of fundamental reasons why Facebook ( $FB Facebook Inc ) should be like a $15.00 or even a $10.00 stock, but apparently there are some other reasons why Facebook ( $FB Facebook Inc ) should be a $23.29 stock. Don’t be so stubborn in your conviction that you’re willing to sacrifice money in order to be proven right, it’s really not that important, we just want to make money; so here’s my suggestion, if you’re interested in this kind of trade, interested in this type of volatility squeeze, this could work for you; plenty of liquidity, it’s like 78,000,000 traded today, it’s plenty of liquidity, we do have some lock ups that are expiring, I think a few of them over the next couple of months, so that’s going to put some weight on the stock, but just purely technical, from a purely technical standpoint, Facebook ( $FB Facebook Inc ) is moving higher and you can go ahead and take some of this stock, just watch it very carefully. If the stock and I’m talking intraday lows here, if the stock starts making lower intraday lows then this squeeze could very well be a failure, but for right now the fact it went up so much today, 61/2 percent, on heavier than average volume, that’s really, really encouraging to me. Also, one thing, I mentioned it at the beginning, Option Market Mentor is now open for our initial price, we’ll just put it that way; here’s what it is, I’ve mentioned this before, you’re probably getting tired of this, hopefully not though; it’s a risk-less 30-day trial for $7.77, you’re going to be charged $7.77 right now and if you decide to cancel in the next 30 days then you get your $7.77 back. As far as the regular prices, you know what? I’m the stock and option guy I don’t do prices, but I do know this, it’s just the way we do all of our products. The initial price that we offer, I’m not talking about the trial I’m talking about the regular price; the initial price that we offer is very soon raised because we always kind of try to aim low because we’re Irish Catholics and that means by definition we are guilt ridden and insecure, so that’s going to move up pretty soon, so I hope you get in there and do it right now. Okay, I will see you guys tomorrow. Free Chart