 Good morning everyone and welcome. This is Melissa Arma with the stock swishing today. I wanted to review Facebook I wanted to take a look at this chart and my prediction on this is that Facebook is lower I'm saying that because ever since the stock gap down in the earnings here. It hasn't done anything, right? Someone asked me about this stock way back here in the middle of December and Said about buying it. I said no, it doesn't look right. I don't think this is right It doesn't look good to me and and I even see this now today a couple days left at the end of the year It still doesn't look good to me the market is is close to the highs Facebook is not near the highs Facebook has not been able to recover since the day of the earnings when it gap down This was a valid short it rated more than 20 points of the day You could have shorted it you could have done an option trade in it for a week It dropped, you know almost 10 points right after the earnings happen You could have been in a short-term swing trade or even done a An option trade and it still looks lower even here now to me. In fact, in fact, this definitely looks lower. I Mean this looks like this is the next target for this It's just you know, how long won't take to get there on 109 108 The point I'm trying to make is the power of the gap Which is something that I discussed in all the webinars that I do It's you know, the reason that I trade gaps is that they're very very powerful When I created my rating system, I wanted to follow institutional money And the reason for that is because that's what directs the movement of stocks Whether they get bought or sold off or shorted in the case of Facebook here again This gap that happened on the earnings on November 3rd The stock really did get down. It was a short of the day You could have shorted it made money and like I said, you could have done it in here It opened at 122 and dropped in a week down to 1 13 55 And you could have done an option in it and you could have done a swing trade and you still could be in it As an overnight depending on how long out you would do a swing trade But the power of the gap shows you for the follow-through for the continuation Not every gap that I trade as a date trade or even an option trade has follow-through But some do how do you know the rating the rating system the rating system? And I will tell you that the ones that rate higher on the 26-point system do have follow-through for longer-term trades and So I think it is extremely important when you decide to take a position in something to know what you're doing Is the stock being bought by institutional money or is it being sold off when people were asking me about this in here about buying it? I said I didn't like it. I don't know if that person did the trader bought it in here It didn't look good here. It doesn't look good here. The stock never recovered from the day of the earnings gap down Yes, it did trade over the high of the gap, but that doesn't mean it recovered It didn't you see here how collapsed right after that you actually the short of this And actually this was a gap down actually this was a gap down on this day the day it rallied It was a gap down that rally but look how it fell so the bottom line is the stock looks lower in Facebook The driving force behind it is the power of the gap from the failed earnings You know that came here when it gap down It's had a big move already immediately after the move itself could be even larger could drop another 10 points and This is why you don't just buy stocks on support There's 200 premium average is support the stock didn't hold it. It didn't hold it here It didn't hold it here The reasons to take trades have to be based on a strategy and buying supporting shorting resistance is not a strategy You can use those things to help you in entries and for stops and targets, but it is not a strategy So the strategy I trade is gaps the power of the gap is real Facebook looks like it's falling through lower from the earnings that happened back in the early November and Anything could happen could the stock gap up and recover from this. Yes, it could but I'm telling you looking at this here Now the way it's traded in the last six weeks. The stock doesn't look good. It absolutely looks lower and You know again every time I look at a chart and I see how these things act not just the day of the gap But then even the continuation of them. It's really interesting to me how how powerful gaps are. I mean, they're real Institutions aren't buying a stock right now. So there's no reason to be long it and in fact it looks like they've been selling it That's the sound reading the chart So if you'd like to learn how to make money in the market, I teach a class. It's called the golden gap And you definitely have to be on the right side when you take a trade You got to be on the right side is a day trade in the moment that you're in it And I believe that you need to have a strategy in order to tell you what that side is my strategy is called the golden gap It's based on the 26-point reading system If you'd like more information you can email me at Melissa at the stocks push calm The next class is in January January 14th and 15th. Thanks everybody and have a great day