The NDX-100 pushed forward on the back of great Facebook earnings closing 0.67% positive. Today´s trading environment presented 20 plus up and downs moves providing our strategy with great trading opportunities. At current levels we prefer shorts on spikes as the market remains in overbought territory. On the economic front, Durable Goods Orders numbers came in better that expected thanks to a big increase in transportation orders although other segments of the economy were muted showing no increase whatsoever. For the economy to push forward we need to see the broader economy posting great results.
FB closed with a 28.o4 % gain and has left investors wondering as the future of the stock. The company basically runs a media service, where users look at friends´ pictures, activities and so on. It has become a great communication and marketing tool as well. The risk is that a better service may come around the corner and cut some of FB market share or even taking their dominant market position (similar to google and yahoo). That would be disastrous……. On the other hand, FB could find a way to “really” monetize its 1 billion plus users. Earning possibilities could be extraordinary if they were to create a service, gadget, etc ( Apple style) that users could not do without.
Today´s Profit USD 295 (Portfolio Size: USD 25,000)
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