Most investors and traders alike are probably glad that last week is over with given how volatile the markets were over renewed concerns about Europe as well as the lukewarm response to the much hyped Facebook (NASDAQ:FB) IPO. In fact and while Facebook (FB) closed slightly higher, a number of its social media peers were sinking while reports of bank runs in Spain following the downgrade of 16 Spanish banks by Moody's has European depositors and hence investors on edge.
Nevertheless and with all of the above uncertainty in mind, NextCandle.com gave the following stock predictions before the market opened on Friday:
- Linkedin Corporation (NYSE:LNKD) had a 74% probability of making a lower low.
- Quepasa Corporation (QPSA) had a 71% probability of making a higher high.
- Lloyds Banking Group PLC (NYSE:LYG) had a 59% probability of making a lower low.
And the Results when the market closed on Friday:
- Linkedin Corporation (LNKD) opened higher at $106.17, had a daily trading range of $96.60 to $109.50 and closed down 5.65% to $99.02. Specifically, Linkedin Corporation (LNKD) spiked higher in morning trading but by 11.30 am it was plunging lower only to rise back up to its opening price and then slowly trend lower for the rest of the trading session.
- Quepasa Corporation (QPSA), which owns a Latin America focused social media site just like Facebook (FB), had a more interesting and wild ride for the day. After closing at $3.91 on Thursday, Quepasa Corporation (QPSA) immediately opened at a higher high of $4.30 and stayed above its previous close until about 11:30 am when it began sinking. By the end of Friday, Quepasa Corporation (QPSA) had a trading range of $3.06 to $4.40 for the day and it closed 21.74% lower at $3.06.
- Lloyds Banking Group PLC (LYG) opened at a lower low of $1.61, had a daily trading range of $1.60 to $1.64 a share and closed down 4.74% to $1.61. My guess is that UK based banks like Lloyds Banking Group PLC (LYG) have some exposure to the real estate bubble that has long sense burst in Spain along with the mess in Greece.
Of course, traders and investors alike should expect extra volatility with social media stocks with the Facebook (FB) IPO and with European banking stocks as the crisis in Europe deepens. Nevertheless, Next Candle's stock forecasts for Linkedin Corporation (LNKD), Quepasa Corporation (QPSA) and Lloyds Banking Group PLC (LYG) were right on the money despite considerable market uncertainty.
NOTE: THIS PIECE WAS JUST POSTED ON THE NEXTCANDLE.COM BLOG.