FB is one of the stocks I'm using to forecast the health of the overall market. Reasons being a) its fortunes aren't tied to the china trade circus, and b) It's a megacap growth stock that isn't ridiculously overvalued.
Currently FB is the strongest performing of the FANG stocks (perhaps due to the aforementioned reasons). Despite it invalidating the bearish bat I had posted (D closed above X) it still briefly tapped my first PT on Friday morning.
The large bearish shark pattern basically covers FB's price action from the october top to now. The shark PRZ is shown in the red box and until FB clears it convincingly to the upside, a retrace to gap fill is always in the cards. Given that its one of the stronger FANG stocks and the market will likely go where FANG goes, a reversal from the red box means to me the markets will continue to tumble.
One caveat to note is that if the reversal here happens due to some FB-specific negative headline then I don't expect any correlation to the broader markets.
I'm holding short term calls as I expect the markets to rally early this week. If it rallies to the darker red portion of the box and RSI on the daily is still showing bearish divergence I'm closing longs and flipping to short. Likewise if the markets show weakness and FB falls out of the red box.
Currently FB is the strongest performing of the FANG stocks (perhaps due to the aforementioned reasons). Despite it invalidating the bearish bat I had posted (D closed above X) it still briefly tapped my first PT on Friday morning.
The large bearish shark pattern basically covers FB's price action from the october top to now. The shark PRZ is shown in the red box and until FB clears it convincingly to the upside, a retrace to gap fill is always in the cards. Given that its one of the stronger FANG stocks and the market will likely go where FANG goes, a reversal from the red box means to me the markets will continue to tumble.
One caveat to note is that if the reversal here happens due to some FB-specific negative headline then I don't expect any correlation to the broader markets.
I'm holding short term calls as I expect the markets to rally early this week. If it rallies to the darker red portion of the box and RSI on the daily is still showing bearish divergence I'm closing longs and flipping to short. Likewise if the markets show weakness and FB falls out of the red box.
Comment:
Unloaded all long short term calls this morning. Easy $.
