All There for the Taking

In light of the LNKD buyout to start the week, TWTR continues to bounce back sharply. In addition, other social firms, like P YELP, even branching out to GPRO, seem like they are now much more in the running for a payday of their own.

Of course, it rarely pans out that way, with an entire group of stocks all getting gobbled up at once. But clearly the price action in the likes of P TWTR and YELP is showing signs of life beyond a mere one-off faded bounce. And seeing them rally after the FOMC this week would be even more impressive, too. 

The true technical test is the "but-for" test, where we ask whether the chart in question would be enticing on the long side "but-for" the possibility of a buyout. And along those lines the social firms still have much more to prove, even with the recent spirited buying. 

Elsewhere, volatility is retracing a bit into the Fed. I would be looking to see if the actual VIX holds 17 now on pullbacks. If it does, and then turns back into the 20s, I view that as a concrete change in character beyond the recent surge.