UPDATE: it never retraced to $15.78, so I wasn’t filled. Didn’t take the trade.
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As I promised, I was going to blog any further trades and document my thoughts. This isn’t a trade yet, but it may be by the end of the day.
GSVC is going bananas on the Facebook IPO news. They are going to file for their IPO next week. GSVC holds a position in private Facebook shares. I want to buy the rumor and sell the news so to speak. I think this is a good trade because it’s one step ahead of the pack. GSVC is just obscure enough that Joey Retail probably hasn’t heard of it.
I didn’t chase the breakout today. Instead I put a limit buy order out for $15.78. I chose that level because it’s a healthy pullback of today’s move and is just inside some other volume traded back to the left on the daily. If I get filled, then great, if not, there is no position. Here’s some charts showing what I was looking at:
If filled, my stop level would be $13.78, underneath all of today’s activity. I would hold until the IPO is filed, and I would take at least a partial on the first move to the all-time high at $19.97 if we get there first.
Tags: Facebook, Gsvc, ipo, position trade
January 27, 2012 at 3:38 pm
where do you see it going once the IPO happens?
January 27, 2012 at 3:42 pm
I really don’t know. I thought they would have popped on the Groupon IPO, but that didn’t work out. It seems to me that the FB IPO is going to be ridiculously overpriced and overhyped. Like I said, I was only interested in the sell the news play, but it looks like I missed it. GSVC is very low float and is a highly risky stock, and I can’t and wouldn’t recommend buying it to anyone.