Facebook (FB) is Due a Rest

Italian short term yields continue to rise and Spain hasn’t been pretty, but stocks rose in Europe and Asia for the first time in five days. There is some speculation that China will inject stimulus in Europe, and some diminished hopes that the European Summit might actually accomplish something.

Futures are basically flat as commodities continue to be trapped in intermediate downtrends, which is especially frustrating the gold bugs out there.

SPX is holding the 1306-1309 area now that we’ve pulled in about 50 handles since Fed day last Wednesday. Short term resistance stands at 1324-1325, and bigger resistance stands at 1333-1337. If Bears want to keep the pressure on, they won’t let bulls take back that level. The 200-day moving average stands at 1297.

The Facebook Circus continues this morning as all the IPO underwriters are allowed to give their coverage. Goldman Sachs (GS) and JPMorgan (JPM) are the highest of the bunch with 12 month targets fo $42 to $45. The real trade for Facebook (FB), however, was after the Red Dog Reversal at $25.70 on June 6th, and then when it broke its downtrend and closed $28.10 on June 14th. Both of these buyable strategies are still time stamped on our blog and from the Morning Call. Today is probably the time to take your profits amidst all the Hoopla! Facebook is due a rest, but it should “re-set” and move higher again shortly.

Linkedin (LNKD) acts very well technically, even with a much lower valuation and metrics. The stock has been on the move, and there is another buyable pattern around $107.10 for continuation.

Zynga (ZNGA) probably can be thrown in the drawer with a stop at $5.50.

Various stocks are acting decently, as we’ve outlined below in Off the Charts, as they set up for macro holds or cash flow trades. Check out last night’s report.

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This is still a time to be tactical and avoid big bets. We have a lot of summer and headlines yet to deal with in coming weeks.

Disclosure: Scott Redler is long FB, AAPL, and LNKD and short SPY.

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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