FACEBOOK THE LOVER
AAPL was snarling, hissing and vomiting on investors in the days and weeks leading up to its earnings report. Much like the little girl in The Exorcist, AAPL did everything possible to warn those who chose to listen that it was possessed by a bearish spirit that was intent on harming any investors who came within spitting distance of the stock. From an angel to a demon in a matter of months.
On the opposite end of the spectrum is FB. Once the poster child for maleficence, FB is one of the better performers in technology over the past few months. As the company prepares to announce earnings in the week ahead, the stock is lovingly starring investors in the eyes and blowing kisses in the wind. In other words, the setup from a price action perspective is outstanding in terms of structure, quality and participation.
There are rare instances where the market gets things wrong. A stock will climb to high end of its range, only to be blindsided by an earnings report that floors investors. I don't think FB is due for such an anomalous event in the week ahead. The earnings should confirm the loving and rosy picture that price has been painting over the past few months.
Here's a look at the upside possibility as we head into earnings this week:
FB
