LinkedIn Poised to Drop?

By: Chris Vermeulen | Fri, Jul 27, 2012
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Last night Zynga tanked, dragging down Facebook with it. There's been a lot of hype regarding everything social, but not exactly a lot of follow through regarding earnings. Recently a new member of our team here at TTT, Brennan Basnicki, put out a fundamental piece on LinkedIn that I think merits a good readover as it is applicable to many of the high flying tech stocks we've seen get absolutely crushed lately. Further, if we look at some more of the fundamentals and technical indicators I think we may have found a prime shorting candidate.


On the fundamental side:


On the Technical Side

LNKD

LNKD

I don't typically advocate positions on single stocks as you're always prone to news events and what not that can have serious implications. That being said, the fundamental and technical stories both seem to point downwards on LinkedIn. With a beta of 1.6, the direction of the market will likely be the single most important factor for LinkedIn up until its 2012 Q2 earnings announcement on August 2nd. Keep in mind too that if you do enter a short to keep a stop in, and I would be cautious taking any position during the earnings report. LinkedIn is very volatile and has already caused a lot of shorts quite a bit of grief. That being said, the timing may finally be right. Stay tuned to my updates and if you're looking for a little more action, maybe take LinkedIn short on one of our next short plays.

 


For the piece Brennan put out earlier today check out http://seekingalpha.com/article/751301-is-linkedin-the-next-netflix-analysis-of-high-p-e-and-growth-stocks

 


 

Chris Vermeulen

Author: Chris Vermeulen

Chris Vermeulen
President of AlgoTrades Systems
www.TheGoldAndOilGuy.com

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Chris Vermeulen

Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997.

Chris' mission is to help his clients boost their investment performance while reducing market exposure and portfolio volatility.

Chris is also the founder of TheGoldAndOilGuy.com, a financial education and investment newsletter service. Chris is responsible for market research and trade alerts for of its newsletter publication.

Through years of research, trading and helping thousands of individual investors around the world. He designed an automated algorithmic trading system for the S&P 500 index which solves his client's biggest problem related to investing in the stock market: the ability to profit in both a rising and falling market.

AlgoTrades' automated trading systems allows individuals to investing using either exchange traded funds or the ES mini futures contracts. It is supported by many leading brokerage firms including:

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He is the author of the popular book "Technical Trading Mastery - 7 Steps To Win With Logic." He has also been featured on the cover of AmalgaTrader Magazine, Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites. His list of personal and professional relationships approaches 25,000, people with whom he connects and shares is market insight with out of his passion for trading.

Chris is a graduate of Seneca College where he specialized in business operations management.

Chris enjoys boating, kiteboarding, mountain biking, fishing and has his ultralight pilots license. He resides in the Toronto area with his wife Kristen and two children.

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