one of the biggest problems I have with a stock like facebook and probably many others similar is that I do look at trends sometimes and I do look at T/A a lot but, like the element of the Fed and its policy, we have another element here and that is perception and transparency. With FB they can spin, cook, pump and really just plain lie about both revenues and net income (and like netflix, twitter, etsy, angie, ebay etc lie about new subscribers (fake subscribers) and future earnings projections) because it is just too hard to verify FB users, users authenticity (outside of the US), users eyeballs and effectiveness on ads, users log on time etc....
In a strong upward market with generally good economic reality traders and buy and holders will eat the numbers up with a spoon regardless of authenticity. But as the macro economics generally in the US and world start to crumble traders and buy and holders will stop believing and sell because sometimes reality is just too hard to ignore (or spin). My feelings (and my position) on FB is that its getting too hard to ignore reality and (like Netflix) I am selling "after" each earnings report from here forward for a while.
My charting on FB is not so high in conviction because of this added element
In a strong upward market with generally good economic reality traders and buy and holders will eat the numbers up with a spoon regardless of authenticity. But as the macro economics generally in the US and world start to crumble traders and buy and holders will stop believing and sell because sometimes reality is just too hard to ignore (or spin). My feelings (and my position) on FB is that its getting too hard to ignore reality and (like Netflix) I am selling "after" each earnings report from here forward for a while.
My charting on FB is not so high in conviction because of this added element
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