Don’t Chase Facebook
The market is slightly extended in the short-term and Facebook’s positive earnings reaction is adding a little more fuel to the fire. Facebook is up $12 dollars pre-market, this is a huge gap for a stock that has 2.3 billion shares in the float. Chances of Facebook digesting this gap up for a few weeks is a high probability event, don’t chase it.
With the market so extended in the short-term, good risk-reward swing set-ups are drying up. There aren’t many out there right now. Over the next 5-days or so I will be extremely selective with new buys.
We are in the middle of earnings season and it’s going to heat up next week with over 1,400 stocks reporting, check the earnings date for your holdings and potential buys. Holding through earnings is a crap shoot.
STOCK OF THE WEEK RECAP
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at firstname.lastname@example.org or 646-480-7463.
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