• 15

FB

QQQ SPY trending higher while VIX is at 52 week

lows.

Earnings not until the end of the month but Fed Beige book release on 011613 could cause

volatitilty.

Entering a possible supply zone after a strong uptrend

move.

BUY THE RUMOR AND SELL THE NEWS

2013

0115-0116

+5.27%SHORT

31.29 29.64

FB

1. BEFORE THE TRADE WAS EXECUTED

2. TRADE AT THE ENTRY OF THE POSITION

3. TAPE DURING THE OPEN POSITION

4. TAPE AT THE EXIT OF THE POSITION

5. TAPE AFTER THE POSITION WAS CLOSED.

011113

• 1

FB

1. BEFORE THE TRADE WAS EXECUTED

1

011113

• 1

QQQ011113

THOUGHTS: Even though the market is trending higher, extended stocks can still pullbackOr start selling off before the market turns lower. However, you are going against the generalTide if you short an uptrending market so a tight stop loss needs to be in place.

• 1

SPY011113

THOUGHTS:

• 1

VIX011113

THOUGHTS:

• 1

FB011413

THOUGHTS: After a nice run up since mid-November (15 day run into December consolidation)And then another move higher for first two weeks of January 2013 (11 days), the trend seemed extended, going from around 17 to 32 in less than two months.

• 1

FB011513

THOUGHTS: This was the announcement later in the trading day.

• 1

FB011513

THOUGHTS:

• 1

FB

2. TRADE AT THE ENTRY OF THE POSITION

2

011513

STOP LOSS 32.00

TARGET EXIT 28.50-29.50

• 1

FB011513

THOUGHTS: Market was trading sideways.

• 1

FB011513

THOUGHTS: The view on the HTCTrading by phone. The trade worked right away. A 31.29 price was executed with a market order indicating a lot of buyers pushing the bid higher.

• 1

FB011513

THOUGHTS: The view on the HTCTrading by phone. The trade worked right away. A 31.29 price was executed with a market order indicating a lot of buyers pushing the bid higher.

• 1

FB

3. TAPE DURING THE OPEN POSITION

3

011513

• 1

FB011513

THOUGHTS: Markets close the day higher even though FB sold off.

• 1

FB011513

THOUGHTS: Markets close the day higher even though FB sold off.

• 1

FB011513

THOUGHTS: QQQ SPY after hours.

• 1

FB011513

THOUGHTS: SPY holding above 10 dMA, trending higher.

• 1

FB011513

THOUGHTS: The trade continued its downward movement twenty to thirtyminutes later as the news conference continued.

• 1

FB011513

THOUGHTS: Other tape action and after hours movement.

• 1

FB011513

THOUGHTS: The short trade worked from the start today and continuedTo work into the close and after hours.

• 1

FB011513

THOUGHTS:

• 1

FB011513

THOUGHTS:31.50 to 32 was the supply or cover short zone.

• 1

FB011513

THOUGHTS: FB was pulling back to the 10 dMA and held around 30. I expect it to Go to 28-28.50 demand zone and hit 20 dMA as well near 28.50 by 011612.

• 1

FB011613

THOUGHTS: Pre-market movement on the second day.

• 1

FB011613

THOUGHTS:FB was moving higher in pre-market trading but couldn’t budge past 30.43, whichProved to hold as hours opened.

• 1

FB

4. TAPE AT THE EXIT OF THE POSITION4

011613

• 1

FB011613

THOUGHTS: With markets trending higher into the Fed Beige Book announcementand FB hitting 5% gains in less than 24 hours, it was time to exit to avoid the mostlikely bounce back as the markets drifted higher. To get to 28.50 could take another 2-5 days,so with the current market trending higher, position was exited.

• 1

FB011613

THOUGHTS: GOOG mobile viewpoint.

• 1

FB

5. TAPE AFTER THE POSITION WAS CLOSED.

5

011613

• 1

FB011613

THOUGHTS: S&P500 is getting ready to make 5 year highs so get out.

• 1

FB011613

THOUGHTS:

• 1

FB011613

THOUGHTS:

• 1

FB011613

THOUGHTS:

• 1

FB011613

THOUGHTS:

• 1

FB011613

THOUGHTS: Intraday, I left right near the day’s low.

• 1

FB011613

THOUGHTS: After a three day sell-off, expect a bounce back?

• 1

FB011613

THOUGHTS:

• 1

FB011613

THOUGHTS:

• 1

FB011613

THOUGHTS: More FB charts will come tomorrow, next week and 1 month from now alongwith market charts to determine if the entry and exit points were well chosen.