FB Update

I filled out the equity model portfolio FB position this week, I had entered it in 1/3rds to get an average price of $19.60 and I have 2 positions in the options model portfolio, 1 in the green 1 in the red. I have leaned toward an equity/non-leveraged position because FB has done exactly what I expected and formed a base, but I don't know how big the base will ultimately be. If I see a great options entry, I'll probably take it, but I have no idea what that will look like until I see it.

Our first FB position returned well over 100% for many members as we entered calls while EVERYONE hated this stock. I feel it's going to make a nice move up and the equity position allows me the room to wait for it as a 2% position loss there doesn't even amount to a half of a percent of a portfolio loss.

Here's the FB update, while the base looks excellent, we may have a little near term weakness, I'd personally use it to build a position, but I'm already done with that.

 Probable targets for FB, although a new high or at least a high above the June/July highs is certainly possible. I have patiently been waiting to enter FB for almost 2 months after the initial long position was closed. The volume alone makes it very east for smart money to accumulate without raisin any suspicions, that's all supply and very cheap supply, someone has to take the other side of the trade, the only difference is 3C gives us an edge in figuring out who took the other side of the trade.

This price pattern also shows a double bottom, but most if not all textbook technical traders would never see it. Over the last 12 years double bottoms have changed from making a shallower second bottom as they did for nearly a century to making a deeper second bottom that acts as a shakeout, this has been going on for years. I noticed this in double bottoms long before I understood the concept of the head fake and how often it is used.

 It almost looks like they are trying to get retail interested in FB, either that or they will run a head fake breakdown below the triangle as it is perfectly formed with volume and everything. Technical Traders going by the text book would read this as a bearish consolidation/continuation triangle because of the preceding trend being down, so to lock those traders in, they will likely run a move below the support of the triangle as technical traders like price confirmation before entering a price pattern like this, that will be the head fake and the spot where I'd consider buying calls as it would be a great timing tool. As you can se by the maturity of the triangle, we are close.

 Short term charts show some recent price weakness, I'll set alerts for a break of triangle support.

 This is the same chart as above, just zoomed to intraday.

 The 15 min chart can't be ignored, look at the lading positive divergence and look where it came together.

 Now look at the same timeframe through all of FB's trading history, an all time new leading positive high while we are near all time lows, that's strong accumulation. I don't know how anyone who even remotely trusts 3C can't get excited over this chart.

Even the 60 min, for those of you who were here for the first trade  (most of you), do you remember how strong the 60 min divergence was at the small white arrow? Also how strong the leading positive divergence was at the white box, it was a no brainer. Now look at the size of the arrow on this base, look how it is much higher in a huge relative positive divergence as prices are lower, this is exciting stuff.

I'll set the alerts for possible call positions, but if I wasn't already at full equity position size, I'd be using any weakness to add to the position.