We have updated our privacy policy and terms & conditions. Find out more here.

Keeping An Eye On The Social Media Stocks And Sector ETF

By Stock MarketsNov 25, 2012 06:22AM GMT
Keeping An Eye On The Social Media Stocks And Sector ETF
By   |  Nov 25, 2012 06:22AM GMT
Due to the recent activity in some of the cheaper, beaten-down Social Media stocks and ETF, as well as Research In Motion (RIMM), as shown on the Daily charts below, I'll be monitoring this group over the next days/weeks. I'll be looking for any parabolic rise and climax on high volumes on stocks such as these as a precursor to a potential major market trend reversal. If this type of stock continues to explode higher in the near-term versus value stocks, I'll also be warned of potential Q4 earnings weakness (markets favouring beta-movers versus actual value).

Chart - 1
Chart - 1

To illustrate what I mean, the following graph shows the decline of these stocks from the date of Facebook's IPO (FB) to this past Friday. Percent-wise, Zynga (ZNGA) and Groupon (GRPN) have been the biggest losers, followed by FB and the Social Media ETF (SOCL).
Chart - 2
Chart - 2

The next graph shows the level of interest in these stocks/ETF compared with the Major Indices over the past two weeks...quite a stark contrast. Whether this continues, remains to be seen.
Chart - 3
Chart - 3
Keeping An Eye On The Social Media Stocks And Sector ETF

Related Articles

Keeping An Eye On The Social Media Stocks And Sector ETF

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Add Chart to Comment
Research In Motion Ltd
Are you sure you want to delete this chart?
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?

Successfully Reported

Thank you. This comment has been flagged for a moderator.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.