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Daily Traders Edge

Chart of the Day: “The” Facebook

August 03
10:03 2022

When the worst stocks on the planet can’t go down any more, that’s usually good information.

We saw a lot of Small-cap Growth, Arkk Funds, Biotech, Chinese Internet and many of those other “Growthy” areas bottom out this Spring, and some of the last ones in June.

At the Mega-cap level, nothing caused more shareholder wealth destruction than Facebook, down 60% from its highs less than a year ago.

But look where prices stopped falling:

You’ve got a combination of former support levels and the 61.8% retracement of the entire rally since 2012.

Here’s what it looks like when you zoom into that level

If one of the biggest companies on the planet, which had been a leader to the downside for so long, can’t go down anymore, what does that say about Communications as a Sector, and even the market more broadly?

Continue Reading at All Star Charts

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