#$%$ are you talking about? FB ran into resistance this morning. Just like the indices. Everything sold off on Yellen comments. FB traded in a range just over $2, and dropped about a buck, it didn't drop $4. The new high on 11/5 was a classic exhaustion gap, look it up since you clearly don't understand what that is. Don't "look at this market" you're seeing things that aren't there. Oy.
Closed above resistance yesterday, but reversed and look where it closed today... exactly the level I pointed out yesterday. Not coincidence.
Thanks. Using hard stops versus mental stops on options is pretty stupid in itself, thats just begging to close your position... but isn't it the traders decision? If I want a stop, place my stop. Personally I wouldn't do it, I do occasionally place a catastrophic stop on a well ITM option, but rarely... but refusing to accept a stop order? Quit trying to help. Many times a stop saves people.
You might be right. HOWEVER... Resistance cluster at 106.26 to 106.35. If it gets through that we should be off to the races. If not, its potentially just a corrective bounce following a classic exhaustion gap on 11/5. Needs to hold 105 for upside to play out.
So 31M shares avg daily volume, 50M shares today, 30M shares Friday, and it went down because George Soros sold 700K. Ok got it. :) (it trades 5x that much every hour)
Why overcomplicate it? 11/5 was a textbook exhaustion gap. Profit taking after a 30%+ run in less than three months.
Now on the opposite side we have todays bottoming stick, recovering all of todays losses to close slightly green, on well above average volume. Traders will see this and very likely buy tomorrows open, or could just as easily gap up.
Learn the patterns and you won't have to ask why. After all it only dropped about 8% after a 30% run.
Bottoming candle is in for the short term. If it pushes back up above 105 tomorrow or Wednesday we could be seeing a retest of that 110 level in pretty short order.
volume has almost equaled fridays volume less than half way through the trading day. at this point I see this as a short term flush out, will probably get a nice afternoon bounce. or just consolidate here and bounce tomorrow. but hourly charts as severely oversold as I've seen in a long long time. OI think it goes lower after an oversold bounce but for now I think the downside is done.