FACEBOOK: why it is not a good trade in April?
- Thread starter ALEXGOLD
- Start date
What?
in love with facebook stock?
it depends what you assume under much profit: 10%, 50%, 100%...
Over the past year the average volume on the FB stock went greatly down (see chart below) which mean that there are much less interest among investors about this stock. An without big investors being interested in this stock this stock cannot advance strongly.cannot go. From September 2014 until February 2015 the FB stock was basically moving side-way.
On the other hand this stock's volatility still high 14-day ATR is still around 2%. Respectfully, FB still easily can make 10% in a short period of time if there are good news/rumors.
I would not state that GOOG, BIDU or AMZN are better than FB. All of this stocks are from the same basket. GOOG is in the side-way trend since January 2014 and average daily volume on GOOG is down as well.
I would say most likely we are looking for a "lazy" year for all these stocks. it more depend on FED now. If it continues to feed Hedge Funds managers with cheap money, they may continue to pump the market. If the decade of the cheap money is over then the same funds managers may start pulling money out of the market and then all these stocks may slide.
Chart courtesy of www.marketvolume.com
FB has in my opinion had a BO above that small trading range. If price cannot continue up after this retracement and falls back into the trading range, it might be a sign to avoid the longs. The volume is markedly lower but I pay less attention to it anyway. I am not interested in trading it or shorting it yet.
Gringo
Gringo
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it depends what you assume under much profit: 10%, 50%, 100%...
Over the past year the average volume on the FB stock went greatly down (see chart below) which mean that there are much less interest among investors about this stock. An without big investors being interested in this stock this stock cannot advance strongly.cannot go. From September 2014 until February 2015 the FB stock was basically moving side-way.
On the other hand this stock's volatility still high 14-day ATR is still around 2%. Respectfully, FB still easily can make 10% in a short period of time if there are good news/rumors.
I would not state that GOOG, BIDU or AMZN are better than FB. All of this stocks are from the same basket. GOOG is in the side-way trend since January 2014 and average daily volume on GOOG is down as well.
I would say most likely we are looking for a "lazy" year for all these stocks. it more depend on FED now. If it continues to feed Hedge Funds managers with cheap money, they may continue to pump the market. If the decade of the cheap money is over then the same funds managers may start pulling money out of the market and then all these stocks may slide.
Chart courtesy of www.marketvolume.com
Baidu has better dynamics, GOOG is good as every stock at some particular periods of time as shown below:
I would not invest in FB at this time as there are better opportunities that can bring more profit.
what does all these charts mean
it's a cyclical and time series prediction of future price movements including volume to identify good times and best instruments for trading for a specific time or day. it also includes risk mitigation for safety trading.