Playing the Ponzi's  Instablog

Playing the Ponzi
Send Message
Why “Playing the Ponzi”? I view the entire monetary and financial system as something of a Ponzi scheme. Starting with currency that is created as debt, and running straight through a global economic model that is based on infinite growth in a finite world. This won’t end well. I’d go a step... More
My blog:
Playing the Ponzi
  • Update: CMG And LNKD Remain Attractive Short Candidates 0 comments
    May 21, 2012 11:01 AM | about stocks: CMG, LNKD, FB

    The S&P is giving us a strong bounce at the moment and may have much higher to go if shorts start feeling squeezed. Speaking of shorts, there are a couple of compelling short candidates that I'd like to update. I remain of the belief that CMG - while a fine company - is likely topping out as a stock. It formed a rising (bearish) wedge over the last 5+ years and has now clearly broke support on both the daily and weekly chart. A move to lower prices would likely take years, but it starts with a break.

    LNKD remains very optimistically valued. They broke under a steep trendline last month, then reported an outstanding quarter just a few weeks ago (the after-hours action and ensuing gap-up being the short term top), but have now clearly broken their supporting trendline.

    (click to enlarge)

    I suspect the market is due for continued upside follow-through from its oversold condition. A rally in price for CMG and/or LNKD may provide a nice shorting opportunity - particularly if they make it back to trendline resistance. I am also intrigued by the idea of shorting FB, but today's sell-off and the lack of pricing history makes me a bit more skittish. Fundamentally, I see FB as being a lot more like MySpace than a younger (NYSEARCA:IPO) Google.

    Disclosure: I am short CMG, LNKD.

    Stocks: CMG, LNKD, FB
Back To Playing the Ponzi's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.