My best trades over the past few days have been shorts on FB. I do think it will have will have some nice bounce days here and there, and once it finally enters the gap and corresponds with a bull market, will be a good trend trader.ProgN said:Daniel is absolutely correct. FB will more than likely go lower, just as AMD will probably go higher. Too many people try to outthink the market and buy calls on FB and puts on AMD. Those are both losing trades most of the time. I'm not speaking for Daniel and he can opine if he thinks I'm wrong.aggiedaniel06 said:
That is the good idea. My first note might have not been clear
Surprise earnings beat = gap up and drift upwards.
Surprise miss = gap down and drift downwards.
Will FB be higher in a year, probably. However don't try to guess with options. JMO
As far as PEAD, GOOGL is an interesting (outlying) case. It has sold off nearly 10% from its post earnings gap up and closed the gap today. I'm going to evaluate in the morning entering a long above today's high (2800) with a couple of targets along the way to 3000, and a stop at today's low (2740). Will give it more thought in the morning, as I generally hate trading GOOGL, but I like this risk/reward.