I know people are ga-ga again about social networking stocks, but I’m very sorry, the chart below, of the Global X Social Media Index (SOCL.O), is jumping up and down, screaming to be shorted. Can’t you hear the screeching?
The pattern is broken, and all the action we’ve seen over the past six days has been about trying to claw to the underside of the pattern. Maybe it’s got another day of climbing left (or not), but it seems far more likely to me that this is going to go cliff-diving than rip through all that overhead supply and zoom to lifetime highs.
Of course, Facebook’s (NASDAQ:FB) earnings after Wednesday’s close will be a big determining factor although, for my money, I’d rather focus on shorting LinkedIn (NYSE:LNKD).
