Oh, Snap! It's More Than Andrew Left

Increasingly famous Citron short-seller, Andrew Left, is making noise for noting Facebook as a short idea in light competition from Snapchat. 

Since 2013, FB has been a bonafide market leader, along with AMZN an outright monster in the Nasdaq and enjoying a seemingly innocuous uptrend during that time. 

Indeed, there have been some vicious bear traps along the way in the form of gaps lower which were bought and eventually set the stage for a new leg higher. 

But Monday's decisive gap lower from the well-define sideways base, below on the daily chart, came on an uptick in sell volume. And FB bulls ought not to succumb to recency bias that every single gap down is an automatic buy--At some point all trends break off, and when we see signs like FB at least wanting correct a bit, if not outright fill some open gaps lower, it likely behooves even the more steadfast bulls to wait for the stock to set back up again. 

Another theme may also be developing here, insofar as the LNKD buyout, TWTR rally this week hinting at the monster leaders pausing while the bruised Nasdaq laggards catch a reversion bid.