Winklevii Revenge

Seeing as Facebook is flattish again this morning and continues to flash signs of "distribution," or heavy selling my institutions of size after a strong bull run, it is worth revisiting the chart to see if this is truly a good leader gone bad. 

Even as other Nasdaq names are bouncing this morning, FB is struggling to reclaim its 200-day moving average and may very well be bear-flagging, denoted by the light blue lines, meaning it is setting up for lower prices yet. 

However, FB has been one tough nut for bears to crack since 2013. I suspect the bull case is that FB and indeed many of the "FANG" stocks atop the Nasdaq are merely experiencing a pre-holiday reset before a Santa Claus rally awaits them to close out 2016. Indeed, this view ought not to be cavalierly dismissed, as dip-buyers continually trap shorts across many markets. 

But what we can say with a bit more certainty is that FB is not the beneficiary of fresh capital inflow at the moment. Instead, those bragging rights are reserved for financials, brokers, steels, transports, and some other corners of the market we are tracking daily for Members. 

So whether FB is topping or not is more of a novelty argument at the moment. The bottom line is that it is correcting for either a reset or further plunge and it is probably correct to let it do just that, focusing elsewhere.