Friday, May 18, 2012


Took a shot on FB:

Bought a 100 shares at 40.02.  I could have flipped it out at at 42 at several point during the day.
It ultimately closed at 38 and changed on the first day of trading.

I have a "feeling" that the underwriters will continue to support it and that the overall market will bounce from oversold conditions.    Bloomberg reported that the underwriters stepped in to hold it over 38 because it would be an embarrassment if it traded lower.  I don't see that going away over the next week.   All eyes are on this one, and if they mishandle the ipo, Morgan Stanley and  Goldman risk losing future ipos.

Its a theory, and I don't have a large position. Obviously, because it's an IPO there is no trading history and no chart worth showing.

I may consider shorting LNKD as a spread trade.  If FB doesn't hold, LNKD sure as hell is not going to either.

Day 2, Big gap  down.  it then set up with a nice bottom at 33.50.  I bought off the break out at 34 (slippage to 34.10)   Put a nice rally to 35 before selling off.  At this point, I need to realize I'm not a day trader.  I'll bang it out 1/2 on a modest move

DAY 3, Gapped down past stopped, executed manually pre market at 32.90  for a 2.5% R loss ouch.

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