Every time you trade a stock, you only
learn why the move is happening when it is too late to take action.
As a trader, you have to read straws in
the wind. The stock is down when it should be up, get out. You will
find out later why that was the right thing to do.
Here is a great link to what actually
happened (apparently): http://www.businessinsider.com/exclusive-heres-the-inside-story-of-what-happened-on-the-facebook-ipo-2012-5?nr_email_referer=1&utm_source=Triggermail&utm_medium=email&utm_term=Business%20Insider%20Select&utm_campaign=Business%20Insider%20Select%202012-05-23
That is history, we deal in the future.
What next for the FB IPO?
Here is the chart.
Chart courtesy of Stockcharts.com
We see some buying come in, the stock
may have held for the time being. Note the lower volume. Big short
interest. Perhaps the stock will hold here but even if it does, we
don't see a clear sign of the kind of up potential that would bring a good trade.
Neither do we see a short trade, even
though some say Facebook is a $20 number. If nothing else, there is
too much company on the short side.
The bears are all over the media, but
that is now, today. I think the bulls will be formulating a counter
attack but I doubt it will take the stock to new highs.
It pays to wait for the right trade.
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