FB Update

While I still remain a fan of FB longer term and I still believe it is in the process of constructing a stage 1 base and probably pretty close to the end of that process, my opinion about the short term hasn't changed much in that I personally feel better about taking some profits from the last FB run and looking to re-establish the shares (or perhaps even buy more) on a pullback so long as that pullback remains healthy and constructive. I see the last several days of FB price action as opportunity cost at best and market risk at worst. When we don't have high probability signals in the near term trade (as is the case now), I don't like to have too big of an open position there until that scenario improves and anyone who has traded FB before knows this stock has a mind of its own, completely isolated from the normal market forces that usually move stocks (which has been a good thing in the past, but is probably not so good right now).

I do think that most of you have a profitable position in FB and I prefer to have some representation there, especially if your position is at a profit and opened when FB was lower, I would personally just feel better about the position size/risk being cut right now as I expressed late last week.

 When we have large triangles like this ascending triangle, they are not consolidation patterns, but rather tops or bottoms depending on the preceding trend, in this case a bottom. I suspect a pullback from breakout resistance to gather some energy to make a real run for a real breakout and that's where I'd like to add to the position so long as the underlying trade shows that the pullback is being used for that purpose, which is too early to say now as the pullback isn't really underway to any great extent yet.

 The very short term intraday chart shows FB with a positive divergence that is holding it in a consolidation position, perhaps we even get a little better pricing, but all in all, this may be the last decent chance to reduce risk at a decent price.

The 10 min chart as well as several others in lower timeframes and the 15 min chart all still suggest that FB has topped for the moment on this last run. You can even see the little head fake , failed breakout move on the open of the 19th which also looks like a reversal cue.  Long term charts remain intact and look good.