DiscoverGold
3 weeks ago
Pre-Earnings Moves Are Underway And History Provides Us GREAT Clues To Find Them!
By: Tom Bowley | July 6, 2024
On Friday, META soared and broke out to another all-time high. Historians weren't surprised. First, check out the chart:
Technically, META's breakout and long-term relative strength are quite bullish. But knowing its seasonal tendencies provides even more confidence to trade META. For instance, check out how META performs during its pre-earnings months:
• Month 1 (Jan, Apr, Jul, Oct): +54.29%
• Month 2 (Feb, May, Aug, Nov): +16.21%
• Month 3 (Mar, Jun, Sep, Dec): +8.40%
These are annualized returns since 2013, when the secular bull market was confirmed. META typically reports its quarterly results late in the first month of each calendar quarter. Its next quarterly report is July 31st, as an example. This current breakout is likely the start of an upside move prior to reporting solid results on the 31st. That is NOT a guarantee, just simply an observation based on history. To further drive home this bullish period for META, consider how it's traded during the first half of calendar quarters (Jan 1-Feb 15, Apr 1-May 15, etc) vs. the second half (Feb 16-Mar 31, May 16-Jun 30, etc):
• First half calendar quarters: +43.11%
• Second half calendar quarters: +9.29%
I believe this historical knowledge is a critical component in becoming an excellent trader. Why not use all the advantages you can muster?
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DiscoverGold
2 months ago
Meta Gets Good Facebook News
By: 24/7 Wall St. | June 6, 2024
There have been concerns that Meta’s (NASDAQ: FB) Facebook’s growth will slow as its monthly active users reach almost 3.1 billion worldwide. People have questioned whether its membership has hit a point of saturation. This is part of Meta’s comeback.
Facebook announced that its growth is not over. A note to investors said, “With five quarters of healthy growth in young adult app usage in the US and Canada, over 40 million US/CA young adults are daily active users, and this number is the highest in three years.”
The increase was due to transitioning from high school to college and from college to first jobs. These job seekers, in particular, have also used Facebook to find employment. The group has also used Facebook Marketplace to find furniture.
Facebook believes it can add other features to draw more young people. These include new AI features to offer more targeted information to members. “Over the next year or so, this advanced recommendations technology will power more products, including our entire video ecosystem, and our Feed recommendations,” Meta stated.
Improved video products are another reason Facebook members will likely be more engaged. “We made it easier to explore and connect over videos you’re interested in, regardless if they’re a Reel, longer video, or Live content,” management added.
A final question investors in Facebook and other social media companies have asked is how many hours people spend on social media daily. If Facebook takes up more of these hours, public corporations like Snap (NYSE: SNAP) and Pinterest (NYSE: PINS) must be concerned.
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DiscoverGold
3 months ago
META's Reverse Island - Two More Mag Seven Islands to Monitor
By: Erin Swenlin | April 26, 2024
Whenever we see price gapping up or down, as happened with META in February, we prepare for the possibility of an island reversal. After the gap up, price forms a cluster, the island, and we ponder the possibility of a gap down to complete the reversal. During the formation of META's island, news coverage was very positive, but yesterday's earnings report made investors unhappy, and META really took a dive, jumping down across the gap.
While some might have been surprised by the final resolution, the chart gave ample clues, as there were negative divergences on both the PMO (price) and OBV (volume).
There was also a PMO negative divergence on the weekly chart.
Island reversals can happen to the downside as well as the upside.
However, we have two more island formations to monitor in the intermediate term. Neither appears that dangerous, as the clues we had on META are not visible on Amazon (AMZN) and NVIDIA (NVDA)...
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Conclusion: META experienced a reverse island execution on earnings. Now we watch and wait to see what AMZN will do going into earnings as it is vulnerable to a gap down. NVDA doesn't report again until next month and thus is not as vulnerable to a reverse island decline.
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