Easy come, easy go…


There probably should be a case in our language to discriminate between “easy comes” of  less than milllions (much less billions) and multi billions.  On Thursday the market shaved (nuked?) 120B (BILLIONS) from the market value of Facebook.  Is this significant?  Well it broke Facebook’s long term bull trend.

The reaction in July set a Basing Point at 194.03 which, with a 6% filter resulted in a stop at 182.38.  Taken down roughly 19-20% FB tripped the stop with a low of 177.60.  We liquidated most of our FB position which was small enough not to create despair.

Zuckerberg has always maintained his ability to manage the compay from its dorm room days.  An 120B faux pas (!)  is a glaring accusation of hubris — which has always been evident.  Buying FB at this point is a no-no to a systems trend follower.

The damage is so great that it leaves a mushroom cloud over the rest of the market

Leave a Reply