FB model seems clear cut: time to re-enter Facebook shorts.

In case you missed it, my models have been calling the moves on Facebook like it was a square dance.   Here is my last post in which I clearly modeled an a-b-c move back up to kiss the lower resistance line from below.

Below is just the C of 2 wave.  It should rally until wave 5 is about the same length as wave 1.  The play is so easy here it's not funny.  Wait until that blue 5 plays out and then short this thing.  Set stops above the top of the 5th of C and walk away without a care in the world.  I can't promise you won't get stopped out if my count is wrong but the odds are sooooo with you on this one and the cost of being wrong will be a matter of a few cents loss on a $62 short.  Them's the kind of odds any gambler should immediately recognize as having value.

 

Keep in mind that if this is a 2nd wave as modeled (and it very probably is) then the next wave is a 3rd (or a C wave).  My target price for that is $44 and it should happen pretty quickly because C waves move rapidly per unit time.  This makes FB an ideal candidate for buying puts.  I like the Sept 2015 $45 puts which are now $1.48 at the bid and $1.53 at the ask with last being $1.51.  That is a reasonably tight spread which makes it more attractive.  I expect that these will trade north of $7 in June.  You would hold these until the bottom of wave 3 or C and then cash out.