Social Media Puts In Top: Short These Plays
Social media stocks like Facebook Inc (NASDAQ:FB), LinkedIn Corp (NYSE:LNKD) and Yelp Inc (NYSE:YELP) have all been on a monster run. It all started when Facebook released earnings that blew away expectations. From this point on, Facebook has risen 75% while the others have had similar moves.
Today, these stocks topped out. How do you know a top is at hand? They opened higher and reversed, turning to the negative side. In addition, the first 30 minutes of trading had huge volume which tells us the institutions were dumping. A reversal with distribution... enough said!