I’d pronounced last week’s selloff a fake in the last tout, but it’s starting to look like the real McCoy. Monday’s drubbing brought the stock down to the edge of a scary gap created on January 31, when DaBoyz leveraged a lollapalooza of fake feel-good news and bullish cyclical forces to spring a wicked squeeze on shorts. Now, everyone who has bought the stock since is facing a possible loss if FB slips below the blue line (see inset). It’s hard to see how it will avoid this, so buckle up. With the stock on a precipice, puts are too pumped to pay. Stay tuned to the chat room, however, since this could change. _______ UPDATE (Mar 19, 10:32 p.m.): Having stopped out bulls Tuesday with a dip beneath the Feb 21 low, today’s rally should have been stronger. This has raised the odds of more slippage into the gap noted above. _______ UPDATE (Mar 20, 11:28 p.m.): Could this be Zuck’s Last Stand? Far from slipping into the void, the stock has rocketed toward a short-squeeze trigger at 166.83. If it closes above that price we’ll adjust our sights upward to a 174.06 minimum target. _______ UPDATE (Mar 21, 8:14 p.m.): Some slight changes are necessary: The bullish trigger point now lies at 167.00, where a print would put 174.72 in play as a minimum upside objective. Here’s the new chart. _______ UPDATE (Mar 24, 11:42 p.m.): The buy signal noted above triggered, but I will recommend ignoring it because it feels like DaBoyz have been distributing the stock for the last month. Their hard work and deviousness is impressive, given the length of time it is taking for FB to break down. ______ UPDATE (Mar 25, 10:49 p.m.): The pop through p makes a rally to at least 168.60 likely. You can bid 163.65, stop 161.95, to get long ‘mechanically’ if the opportunity arises; then short 168.60 with a tight stop if you’ve made money on the way up. _______ UPDATE (Mar 26, 9:43 p.m.): The rally topped at 169.45 on a short-squeeze gap that maxed out the lesser charts. That should be it for a while, but if the stock should surprise by pushing above March 14’s 171.15 peak, that would re-energize bulls for a shot at 174.54, or even — better sit down for this — 190.00.
