Facebook and Intu Earnings & DAX DOW Levels

Same intraday charts but very different daily charts, where’s the trade? Plus DAX and DOW levels in play this week.

A very good evening to you. Let’s have a quick look at what we’ve been talking about the last few videos.  So we had Facebook earnings out today and, actually, interestingly it’s gapped up quite a lot but then it’s pulled right back and that’s always really curious to me. I like to see what’s going to happen after we’ve had that. Basically it’s been a one way street since the open, it’s just been sell off, sell off, sell off.  After the initial spike up, after hours to 134, it’s just drifted back off and off. 

Now, normally if I saw that and the daily chart was in a down trend, I would think it’s a great shorting opportunity because it’s just undone all the work that it did pre-market and it’s unwinding, but as Facebook is such a strong chart, you’ve got to be still bullish on Facebook just because the strength of the chart. So it’s interesting, it’s good to know, interesting to watch, but I can’t see a trade from that just yet.  Maybe in a few days if it goes a bit lower or finds some support, there’ll be an opportunity. But it’s on the watch list, but nothing doing for me at the moment.  What’s interesting is, we’ve got a trade on the DAX today. We talked about this a couple of videos ago, push up at really key level and then the enter straight back through. So exactly what happened really, we talked about doing a pair trade with the DOW, but the DOW hasn’t tagged the twenty period yet, but the DAX has done what we hoped it would do, which is up to that really key level, look on the hourly chart. A little ping through, come back under, ramped straight away in the morning, ramped back up and then it just came straight back down and the risk wasn’t really that much and then it just drove down lower and lower and lower and found some support as you would expect at the prior low from yesterday, wicked through late in the afternoon and that was the opportunity.

So nothing crazy, it’s not a home run but that’s showing us that that level that we marked out before is still in place, so how many trades can we get off that? Let’s see. Looking at the DOW very quickly, on the daily we still haven’t quite tagged that 20 period but we’re not far off it, we’re pulling back that support. So that is on my watch list, I’m keeping an eye on that which we will see what happens. 

The final one I want to just look through is INTU properties. We talked about  this, we talked about Crispin Odey, and was it going to sell off after earnings. Earnings was today and in actual fact, I haven’t looked at the earnings, I’m looking at the chart, obviously they’ve ramped up, but they’ve undone the ramp a little bit. This is more exciting than Facebook to me. I think if we can’t get back above three or if we get above three and then roll back over again, it may be a short. I mean, chart wise, it’s still choppy but you’ve got to look at it from the perspective of what it’s been doing. It’s been rallying, then selling off, rallying, then selling off. That has been the historical movement of this chart for the past year or so; a good rally, then a sell off. Every rally sells, so it’s a cyclical type of chart. So I feel more comfortable selling the top of a good move for a counter trend, for a mean reversion type trade back to a moving average type of thing. But let’s just see. I don’t think it’s triggering just yet but I’m definitely going to keep my eye on that. So that’s the UK stock INTU Properties and it just broils my attention purely because the fund manager has got a large short position, so you would assume he’s done fundamental research which supports that, so now we just need a technical signal to combine with that and give us an extra layer of edge.

So loads of stuff going, loads of things to look at, starting to build a little bit of a watch list, a little bit of a scan, a few things going on. Nothing quite setting up perfectly yet but I’ve got a few things levels to work off, so we’ll see what happens tomorrow. Take care guys, same time, same place tomorrow evening. Have a great trading day.