Day Trading: Facebook Stock & Twitter Stock Short on Election Uncertainty

Hey what’s up guys Mario I want to mention hey guys the election is here it’s it’s it’s getting uh pretty wild out there the market is continuing to sell off a lot of uncertainty tomorrow regarding the election uh don’t forget to get out there and vote uh now I’m gonna explain to you how the election is affecting the market I’m gonna go over some market fundamentals and gonna go over some trades and how i was able to capitalize on that um negative sentiment over the market i did have the opportunity to short sell Facebook and twitter and I’m going to talk about why i shorted those two companies and how I’m able to capitalize on that on the downside so tomorrow uh there is a huge election and that has caused overall market uh volatility uh companies uh especially in Facebook and twitter any social media uh space have been affected severely because there might also be um not only because they’re they’re high beta but they’re also in the industry that might be regulated there’s been a lot of misinformation out there in the internet especially social media that have caused a lot of social unrest uh protests riots in the last couple months so uh my point of view is that i really believe they’re gonna get uh regulated very very soon um and i’m gonna explain to you that how i was able to capitalize on that on these trades so uh let’s get started let me share my screen now don’t forget to smash that like button and subscribe to channel if you find any value uh let’s get started guys share my screen and talk about that okay so uh why did i decide to short um twitter and Facebook uh well before i go there i want to go over market fundamentals uh now the market has been selling off since uh last week it started October 26 excuse me it broke over this key level is 340. and the VIX just had a huge humongous spike in that same day so when you kind of see those type of moves in the market you know that kind of gives you a telltale sign a red flag hey we might get a bigger sell-off so especially when volatility is that high high beta stocks like Facebook and twitter tend to get hit and that’s pretty much what happened um you know even during those days you know if you look at October 26 Facebook had a huge huge sell-off now why did i trade uh Facebook and twitter today um great question so if you go if you zoom in to uh Facebook’s uh uh chart especially uh on Friday they did report earnings but if you look at their earnings after they’re reported uh they had humongous sell volume you know even though they had a really good earnings report and they actually beat earnings the estimate was uh 1.94 earnings per share and they actually reported 2.71 earnings per share so they actually beat they actually exceeded earnings but why the selloff you know one they’re high beta they’re moving with the market and two the social media industry right now is in deep scrutiny with the with the congress you know they’ve actually had hearings a couple days ago and most likely they’re gonna get their regulated uh and the reason why is because they’ve been um accused of misinformation spreading misinformation or their platforms have been used to spread a lot of misinformation and that misinformation is dangerous it really is dangerous you know it’s caused a lot of social unrest in terms of uh protests uh and raw yet and it could make things worse and tomorrow we have the election uh so things could get a little uh tricky out there guys so who knows what’s gonna happen tomorrow guys stay safe i hope you guys had the chance to upload early through mail uh so uh we’re gonna see tomorrow in the markets how they’re affected through that so let’s cover uh Facebook and how it traded so i was looking for a low hanging fruit uh trade on Facebook today uh after this huge sell-off i was looking for a pop in the morning to kind of get short so we had a huge spike in the morning and that’s what i was kind of expecting uh now when it comes down to shorting especially on low hanging fruit uh trades uh in the morning especially front side i always look to to have a lot of big range a lot of flexibility and i only look to add on key levels the first key level was the midpoint which is 266 uh to 630 to 66 and i now i actually rounded now to 266 so i had a starter size there and my next entry was going to be 270. so that was my second uh my second ad and i had actually another one here at 273 but it didn’t get to that didn’t get to that level now a lot of new traders tend to make the mistake of kind of like you know uh putting their starter and they keep adding adding front side and they get squeezed out so i only i only goes full size or or go really big on confirmation but since it kind of and this this time around since it kind of hit my initial entries at the right level that i wanted so there was no really reason for me to kind of even go even bigger but once the guy once i noticed that the of course once it got in it wasn’t noticed in the market was trying to kind of turn around and start a downtrend especially the NASDAQ now let me show you uh let’s try the NASDAQ i decided to start taking some uh profits so you see that’s like double topped here um and it started a kind of downtrend and uh down came with uh Facebook so i took it on my first uh took half my profits here the 2663 30 level the midpoint uh my next level was just to uh 6460 which is uh close to the um close to the uh with the opening line and the max line was 264 and uh my next line was 262 all the way down to 260.

so all these line guys i get these lines 06:01 - from intraday uh support and resistance levels so based on the prior days introduce shark so this is where i get my lines and um and that’s where i i like to cover so i go to life online and that was pretty much it on on Facebook so hopefully that kind of makes sense not twitter pretty much same thing as a Facebook uh they had earnings report on Friday huge sell-off again uh social media space is is getting hit uh not only that but it’s also high beta uh and one thing that i was actually kind of surprised about twitter is that we didn’t get a bigger spike so i was actually anticipating a bigger spike to the midpoint here 4250s around the area and even higher but we didn’t so my thought process was like okay so we didn’t we didn’t we we kind of got you know stuffed here in in the 4140 area and kind of pulled back so the way i saw it was like okay so I’m gonna look for consolidation I’m gonna wait for consolidation for it to kind of move around do its thing and I’m gonna try to kind of start getting slowly adding a little by little and and go full size and confirmation uh so that’s literally what i what i did so because you could see this downtrend based on the pre- market it was holding it was holding now it did kind of break off here but it literally sold off right away but it was holding and the reason why i actually decided to kind of get in here on this level uh 262 40 60 areas because we had this big spike in the morning and it literally got rejected huge stuff and it went uh below b-web and it started to consolidate and i felt you know what if it breaks below 40 60 I’m gonna get it so it broke and i got it now it kind of did pull back but this 41 level was a very important uh intraday resistance and it held i i actually really liked that and it was holding that that trend so now i was looking for just he was going to create lower lows and uh broke below this uh 40 40. i when once it broke i added again and kind of pulled back but it consolidated and i thought if it breaks this uh below 40 40 again I’m gonna go full size this is gonna start down training and the reason why was because the NASDAQ was starting to solve right you see that NASDAQ was already downtrend so i i had a feeling you know what this is gonna this is gonna start selling so i did add and i go i went full size my first cover was 40 and the reason why i i had a 40 is an important life because if you look at a daily chart the 40 level it was right here very very important support level in the daily shark so added my first cover here um my second cover was going to be here the first pivot s1 pivot but it kind of bounced around it had a little little bounce here you know i really don’t like his wicks because sometimes they do two pounds and pull back all the way to b web so i got a little nervous decided to take another half you know it doesn’t hurt to take more profits i held the rest it finally pulled back to pivot i took my second half i let it bounce around it was consolidated consolidating and i this and it kind of broke below that my my actually my my next level was going to be 39.50 but it broke below that below 39.60 it bounced again and I’ll like do it i don’t want to i want to take some profits on the table again i took some more it finally pulled back again again the third 39.60 help i took some more profits um and then finally finally if it broke into a 3950 and i took some more but once it kind of broke 39.50 it literally kind of just started to kind of accelerate a selloff so i kind of started taking you know a little bit more shares on the you know every like 20 cents so i took some more here at 39.30 took some more here at 39.

20 and i was actually looking for a it moved 09:56 - to 39 but it almost got there uh and i kind of almost got there i think the low of this uh time frame was 39.02 so i missed my entry by like two cents but i was okay you know I’m like you know what whatever i pretty much already maximized this trade uh so when i saw a little bounce there i took took some more off and then i had my my very tight stop and the rest at 39.22 and i got stopped off and the reason why i started to do that was because the market was already kind of bouncing and that was it was around i think it was around this area right here in there so the market kind of bounced so that pretty much explains his trades guys um overall guys this has to do a lot with the elections of course um and not only that but specifically in the social media industry there might be some regulation coming very soon again social media has been accused of spreading misinformation and again a lot of misinformation has been manipulating a lot of people to vote a certain way either left or right it doesn’t matter misinformation is completely uh not good for a society because it could cause a lot of tensions that’s why we’ve seen a lot of uh because um we’ve seen a lot of you know uh riots and protests the last couple months you know it’s like adding fuel to the fire uh so that’s that’s not good guys that’s not good at all so i could see a regulation coming very soon so hey guys tomorrow’s the election i hope you get a chance to vote hope you voted early stay safe and we’ll see you guys tomorrow don’t forget to smash that like button and subscribe this channel you learn something happy going guys til next time .