Taking the Other Side:
I am not going out on a limb here stating that we are in a very volatile seasonality period and coming off a big run it makes sense to maybe take some rapid gains off the table. My trading style is longer term, but in times like these technical analysis comes in handy, where one can shave around core positions and wait for nearer the Q4 period where it would make sense to hold more patiently. Below could be a good example of that with the chart of META. Almost all I speak with are on the long bandwagon and I am happy to take the other side of the trade. Of course, if the 540 level is taken out on a CLOSING basis I will lick my wounds and move on to the next opportunity, but I think this is ripe for a tactical short. This is classified as a communication services play but has a profound impact on technology and just looking at the daily chart below notice the very wide and loose overall trade, a hallmark bearish trait. Its MONTHLY chart shows it may be tiring a bit, and with good reason following a 15 of 16-month win streak, not a typo, after a bounce off the very round par number in late 2022. Since then we had a bearish evening star completed in April, a spinning top in July, and a possible hanging man so far in August (all circled). The weight of the evidence suggests a prudent pause here and some give back before a late 2024 run higher.