NASDAQ:FB FACEBOOK INC
As far as I'm concerned the perfect buy and sell indicator is the up indicator. Sell Facebook when the up hit 100 and buy when the up hits 0. It gave a sell on last Thursday at 100. If you look at the here you will notice that the up gave a sell also at about the same price on 6/4. It hasn't given a buy signal so a short remains in place until the up(orange line) hits 0. Go back and you'll see that the up gave a sell at the all time high for FB at $86.07 and a buy at $80.37. The down indicator I find useful for bottoms. The up also gave a sell on April 23 and a buy after $FB had fallen 11%. I expect Facebook to trade between $74.03 and $77.37 in about 15 trading days. I hold puts from $80 to $83 with expirations from next week to next month. Fundamentally FB states in their last 10k that they are being Examined (Audited) by the IRS . Apparently they used Billions of Dollars of tax credits over the last 3 years that they are not entitled too because of a change in ownership of greater than 50% with their . This news is well hidden in the 10k under notes to Financial statements in the income tax section. IMO this is like trading with inside information except it has been disclosed, just hidden well and not published by the news media. If the news comes out soon, you will see FB trade below the price imo.