Home > charting trendlines, investing, stock chart breakdown, Stock Market, technical analysis > Update: LNKD and CMG remain appealing short candidates

Update: LNKD and CMG remain appealing short candidates

The S&P is giving us a strong bounce at the moment and may have much higher to go if shorts start feeling squeezed.  Speaking of shorts, there are a couple of compelling short candidates that I’d like to update.  I remain of the belief that CMG – while a fine company – is likely topping out as a stock.  It formed a rising (bearish) wedge over the last 5+ years and has now clearly broken support on both the daily and weekly chart.  A move to lower prices would likely take years, but it starts with a break.

LNKD remains very optimistically valued.  They broke under a steep trendline last month, then reported an outstanding quarter just a few weeks ago (the after-hours action and ensuing gap-up being the short term top), but have now clearly broken their supporting trendline.

I suspect the market is due for continued upside follow-through from its oversold condition.  A rally in price for CMG and/or LNKD may provide a nice shorting opportunity – particularly if they make it back to trendline resistance.  I am also intrigued by the idea of shorting FB, but today’s sell-off and the lack of pricing history makes me a bit more skittish.  Fundamentally, I see FB as being a lot more like MySpace than a younger (IPO) Google.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: