Here’s the current pic on LNKD and FB. (February 12, 2013)

by DAN LNKD FB GE SJM LNKD DECK HPQ 
I’m Dan Fitzpatrick at Stock Market Mentor and Option Market Mentor. It’s February 12th. I’m going back to Linkedin ( $LNKD Linkedin Corporation ). I’m pretty sure I’ve covered this recently, I mean I know I have in the members section, I think I might have put one out here in the freebie section, but if I didn’t, here’s Linkedin ( $LNKD Linkedin Corporation ). This is a stock, I mean look, it’s just a rocket ship; it went from $125.00 up to $155.00, my gosh shades of Netflix ( $NFLX Netflix, Inc ). Awesome numbers, this is what happens. The shorts definitely are covering. Now why you would be short, seriously, if this is you don’t take offense, well you actually can take offense. Only a moron would be short a stock like this when it’s consolidating after this kind of move. If they announce bad earnings, sure, you’re going to get paid off but that is such a low probability trade. Again, if you’re this guy, sorry, hit the cancel button. But do not ever short a stock that’s consolidating at the right side of a really nice shallow bowl pattern like this. Because what this stock did, okay it flushed out all of these traders over here or the ones that were kind of weak hands flushed them all out. Then the stock starts climbing, but it didn’t climb in a steep climb, okay, it was trickling up, up and down, and up and down. Now let’s look at some of this stuff, we’ll clean it up. Consolidation, okay this is a little profit-taking, actually look, this was a little profit taking, so we got up, and a rest, up and a rest, up and a rest. So this stock had been climbing and resting all the way up. Each time this stock was getting more and more interest, and then finally we get earnings, and boom! A breakout. Now, I’ll say it again, if the company had announced really, really horrible earnings, sure, the stock could have dropped, but this kind of pattern here, with this kind of consolidation is really bullish, you could even call it basically like a cup and handle pattern. I mean I could call it that and you don’t want to be short stocks like this. So if you did that and you lost a lot of money, well two things, first of all, sorry about that, second of all you kind of deserved it. So let’s go forward here. What are we going to do with Linkedin ( $LNKD Linkedin Corporation ) now? Even though this stock did not advance today, this is a pretty big victory for the bulls, because after this kind of move higher this did not come back much. It’s way outside the upper Bollinger Band. Volume, just barely above average after big massive volume to the upside. Now could we see further declines? Yeah, I’m kind of expecting that, but I would not short this stock. Here’s what I would suggest looking at, look at the intraday low from today; okay, that’s $152.90. If the stock starts trading anything lower than $152.90 then that’s kind of turning into bearsville. If it starts trading below $149.00, which was Monday’s intraday low, then you’re going to get a more profound pullback. But here’s the thing and it’s almost kind of a little counter-intuitive. You know when the real buy signal on this stock is going to be if you’re aggressive? The buy signal is when it’s above Monday’s intraday high. If Linkedin ( $LNKD Linkedin Corporation ) goes above Monday’s intraday high of $158.90 that’s going to light a firecracker. Not just a firecracker it’s going to light a fire under buyers here and you’re going to see Linkedin ( $LNKD Linkedin Corporation ) blast a lot higher. This is really kind of a volatility squeeze and in the early stages of a volatility squeeze in a weekly time frame. Daily timeframe extended, in need of a rest, definitely in need of a rest. But on that weekly time frame you can see that ultimately it looks to me like this stock could move higher. Now, the other side of the coin. Facebook ( $FB Facebook Inc ). I mentioned yesterday that you don’t want to be long this stock because this kind of pull back to the 50-day moving average should have lead to a bounce; it didn’t, instead this stock came back down and is now printing new lows after this consolidation. Just stay away from this stock it’s under distribution. I mentioned last night about the possibility, actually the probability that at some point Facebook ( $FB Facebook Inc ) is going to get added to the S&P 500, that could be tomorrow or it could be a year from tomorrow, but ultimately it’s going to get added, but for the time being you’ve got the stock just under weakness. I know a lot of you look at Facebook ( $FB Facebook Inc ), you know we track how many people open our emails, you know click on the links and all that. Whenever I do Facebook ( $FB Facebook Inc ), Linkedin ( $LNKD Linkedin Corporation ), Apple ( $AAPL Apple Inc ), for awhile Groupon ( $GRPN Groupon Inc ), you know the sexy stocks, the ones that everybody talks about on TV all the time, Research In Motion ($BBRY Research In Motion Ltd ) or Blackberry, those are the ones that people really seem to care about. If I were to ever do GE ( $GE General Electric Company ), I wouldn’t, nobody would really care about that. If I were ever able to do Smucker ( $SJM The J.M. Smucker Company ), which I own, and is breaking out, and should be bought. If I were ever able to do that or chose to do that in the free video, probably got about nine people opening it up because nobody really cares about this stock. Anyway, the bottom line is I would avoid Facebook ( $FB Facebook Inc ), I would really watch the heck out of Linkedin Corporation ) because that stock still looks as strong as death, but it’s just not something that you want to be messing around with right now. By the way if you’re long this stock, why? Hopefully you’re long from these lower levels and you’re sitting on a bunch of profits, don’t be greedy, take the money off the table, you don’t have to get every penny, don’t. Take the money off the table, leave this last little goose higher for somebody else who has a lot more stones than you do and is willing to buy this stock at this high price. Let them do that, all you need to do is book your profits and then look for something else to buy, hint, hint, look for stuff like that. Anyway, that’s it for this freebie. A lot of stocks in here actually for you to look at. If you have not tried Stock Market Mentor I’m telling you I want to do that. I’m watching you; I know whether you’re going to or not. But I definitely want you to try that out because I’m working really hard to give our traders not just a good education, but I want to help them beat the snot out of the S&P 500 and get you in the right trades at the right time. Hewlett Packard ( $HPQ Hewlett-Packard Company ), guess what? That’s something that I’m going to be looking at tomorrow, it’s probably going to be for Option Market Mentor, so if you’re interested in trading options, guess what? I want to see over there too; we give a break to those who signed up for both of them. So if you like my analysis check that out because I’m a lot longer winded over there. If you don’t like my analysis that’s okay too, just put the mute button on and look at the charts. Anyway I’ll talk to you next time.

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