Thursday, May 31, 2012 4:42:03 PM
Facebook Tempts Mankind With Forbidden Fruit
Facebook Tempts Mankind With Forbidden Fruit
http://www.stocklegends.com/facebook-tempts-man-with-forbidden-fruit/
Facebook's IPO (FB) stock price per share and overall morale has fallen drastically since its $38 IPO release just over 1 weeks ago. To all those that jumped on the Facebook bandwagon along side the mainstream media filled with enthusiastic chants and raves shouting to the moon its time to retire! My message to you is simple and direct, cut your loses, the momentum has left the building and with the most recent support at $31.00 dollars breaking like a piece of stale spaghetti much more significant loses could occur if the basic technicals are ignored! This is the textbook definition of what we refer to as a falling knife. Whether or not the drop in price is justified is not of any relevance based on the fact that fear has complete control over the trading chart.
Based on past experience in similar situations with emotion driven trading, the chances of a ray of light parting the clouds followed by instantaneous change in the direction of the momentum is close to never going to happen. What we have seen in the price of Facebook shares could potentially take a long term time period to settle and recover. With that being said there are some key elements that would have to happen. The first of which is a confirmation of a bottom, followed with an established support, and a catalyst strong enough to endure to upward selling pressure of the investors that are currently holding the Facebook "bag". I use this term lightly and it represents investors that are currently red on the trade that will more times than not panic to get out of the trade with minimal loses. As many read this article there will be a wide variety of emotions that will dictate your overall mood and acceptance to the station on the table.
The underlying fact is that the Facebook IPO was hyped by the mainstream media on a level that is comparable to a late night wrestling debut. To add to the mix of pure delusion disregard for basic investment principles Facebook neglected to make pertinent information readily available as required to the public prior to entering the public sector.
The rest of the article can be read here:
http://www.stocklegends.com/facebook-tempts-man-with-forbidden-fruit/
Facebook Tempts Mankind With Forbidden Fruit
http://www.stocklegends.com/facebook-tempts-man-with-forbidden-fruit/
Facebook's IPO (FB) stock price per share and overall morale has fallen drastically since its $38 IPO release just over 1 weeks ago. To all those that jumped on the Facebook bandwagon along side the mainstream media filled with enthusiastic chants and raves shouting to the moon its time to retire! My message to you is simple and direct, cut your loses, the momentum has left the building and with the most recent support at $31.00 dollars breaking like a piece of stale spaghetti much more significant loses could occur if the basic technicals are ignored! This is the textbook definition of what we refer to as a falling knife. Whether or not the drop in price is justified is not of any relevance based on the fact that fear has complete control over the trading chart.
Based on past experience in similar situations with emotion driven trading, the chances of a ray of light parting the clouds followed by instantaneous change in the direction of the momentum is close to never going to happen. What we have seen in the price of Facebook shares could potentially take a long term time period to settle and recover. With that being said there are some key elements that would have to happen. The first of which is a confirmation of a bottom, followed with an established support, and a catalyst strong enough to endure to upward selling pressure of the investors that are currently holding the Facebook "bag". I use this term lightly and it represents investors that are currently red on the trade that will more times than not panic to get out of the trade with minimal loses. As many read this article there will be a wide variety of emotions that will dictate your overall mood and acceptance to the station on the table.
The underlying fact is that the Facebook IPO was hyped by the mainstream media on a level that is comparable to a late night wrestling debut. To add to the mix of pure delusion disregard for basic investment principles Facebook neglected to make pertinent information readily available as required to the public prior to entering the public sector.
The rest of the article can be read here:
http://www.stocklegends.com/facebook-tempts-man-with-forbidden-fruit/
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