A Lone General

Facebook is attempting to compensate for the dearth of market leadership, gapping up roughly 12% this morning after a stellar earnings report. Other leaders such as AAPL CMG NFLX PCLN TSLA have all fallen in recent months.

Even with a leader like UA gapping up hard this morning after earnings, it is worth noting this is the first time UA has tested its 50-day moving average since October 2015, and there likely lurks tons of trapped longs and, in effect, overhead supply above creating another short entry soon. 

AMZN and GOOGL have earnings coming up, but they too have not been leading the market higher of late. And, of course, the biotechnology weakness is glaring and downright ominous, considering the exuberant sentiment we saw this morning in the face of a crude oil and stock index futures' rally. 

Beyond that, FB may actually be setting up for a quality short entry, particularly if this is going to be their last blowout earnings report for a few quarters, which is a thesis I am warming up to by the moment. 

On the updated daily chart, below, Facebook may look bullish on a standalone basis.

But with Rome burning around him in the markets and possibly the global economy, CEO Mark Zuckerberg was literally laughing on the call last night, which has the hallmarks of the last gasp for a lone general. 

Under $108, FB as a short is viable.