Tuesday, 30 July 2013

Trading Tout: Extra! Extra! Facebook Discovers Cure for Cancer

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Actionable Advice for Wednesday, July 31

$ FB – Facebook (Last:37.63)

July 31, 2013 12:01 am GMT

We now see exactly what kind of idiotic press releases are helping DaBoyz goose this stock into outer space. Yesterday, the planted story-of-the-day concerned Facebook’s supposed intention to sell TV ads on their site for $2.5 million per day.  Think about it: revenues approaching $1B a year from just one source — presumably for an ad that could pop up in your face or mine a thousand times without making even the faintest impression.

Facebook might just as easily have claimed a cure for cancer.  Anyway, the upshot for the stock is that it is bound at least for the 40.53 rally target shown (see inset), implying the stock is still a bull trade here (albeit a ‘camo’ short from 40.53).  It will be difficult to find camouflage cover for buying such an advanced rally, but I’d suggest zooming down to the 2-minute chart to find an entry signal that can be leveraged. Coming off minor lows, such patterns seem to be reaching their respective p midpoints consistently. This implies that traders stand a good chance of losing little or nothing even on trades that don’t work out. Click here to learn how you can reduce entry risk by using the ‘camouflage’ trading technique.


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