Did You Take The Other Side of Mark Cuban's Trade? Fb - June 18, 2012

I'm Dan Fitzpatrick at StockMarketMentor.com on Monday, June 18th. I've been talking about Facebook ( $FB ) from time to time but you can forget about Facebook ( $FB ) per se. Let's just look at the chart. In another words forget about the ticker, just look at the chart. There's not enough information, there's not enough data on this chart to really trade it responsibly or effectively, I should say using the daily chart. With that said though, and I have mentioned this before in this issue of the free Chart of the Day. This was the low, the intraday low, you've gotta watch the intraday lows. Since this time on the 6th, every single one has been higher than the last. What does that tell you? It tells you that with each day that goes by sellers become less and less aggressive relative to buyers. In other words the maximum selling pressure that they're exerting during the day is not as great as it was yesterday. This is what an uptrend looks like. I'm no real fan of Facebook ( $FB ) though you are more then welcome to friend me if you'd like. I'll confirm you all. But look, this is a chart pattern that works one thing on this chart. So how do you know when the trend at least this short term you know the short trend here the near term trend. How do you know when it's in trouble? Well when we get the lower intraday low. It's not to say that the up trend is going to end. Just means that you've got more selling pressure relative to what's happened here. So you want to keep track of the daily chart. Here's another chart that you should be looking at. The hourly chart, the sixty minute chart. You knew if you're looking at this you know whenever you've got a new issue you need to break it down into intraday time frames. You find one that works. I've talked about the fifteen minute chart before. It shows a clear uptrend there. Now we're looking at the hourly chart. You can look and see exactly where the buy point was on this thing. Right there volume was only about average, but it was certainly there. You would have picked it up if you'd just been looking at the daily chart. However this was a very, very clear signal. So now where do we go from here? Well, typical Bollinger band analysis says okay, this hook, opposite the price, reflects a decline or decrease in volatility. When you see the hook you can expect, at best, sideways trading for a bit. Not to say that we're gonna get a big pullback. We may in fact get a move higher but for the time being we can expect this stock to pause for a little bit. So I would suggest just relaxing. If you've got stock hold onto it. Though I would want to keep a pretty tight stop here particularly if you have options. If you're waiting for the next buy point you think, oh you've missed the boat. No you haven't. Watch this moving average. Watch the twenty period moving average. It's the twenty hour moving average, the middle Bollinger band. When the stock gets close to this level, that's when you want to pull the trigger and take some stock. By the way a lot of times we can see this, we'll see breakout from of volatility squeeze and then a more substantial pullback and then finally a bounce. So I don't know which way it's going to go if we're just getting this little thing and then we move higher or if we get a more substantial pullback. You don't have to really know. You just manage risk and that is you want to be long, but you gotta have some kind of stop on a new position. If the stock pulls back further great, you get stopped out bummer. Too bad so sad you wait for the stock to bottom out then as it starts rallying, gives you any kind a sense that the selling has given way to buying, that's when you take the stock and you're off to the races, but ultimately I think Facebook ( $FB ) is going to move higher. I'll know I'm wrong when we get a lower intraday low. Okay members get over the Strategy Session I've got some stocks that are kind of giving us a right here right now moment.