The collision of global markets and social mood

Thursday, February 20, 2014

Zuck And The High-Water Event

The S&P didn't make it to 1850.84, but it filled the 1844.86 gap and sold off hard. I'm seeing two scenarios at the moment. Both will be on shaky ground if 1809.22 breaks.

Note that the top chart mentions a rising wedge but shows an a-b-c flat structure. The chart below shows a wedge.

I think we may have just seen the high-water mark for social media. Zuckerberg & Co. just committed a total of $19 billion for an instant messaging company. Funny that the stock promptly sold off afterward in the aftermarket. Perhaps because of this chart?

Mood creates waves which then create wave patterns. News comes after the wave patterns complete.

With this deal Zuckerberg will prove whether he is a visionary or just a hoodie. I think he may have just rung the bell for the social media top.

When the CEO of What'sApp sent a message to his users affirming that they "can still count on absolutely no ads interrupting your communication, " it appears someone may be in for a rude awakening. Either Zuck will have to realize he's running a publicly traded company that relies on ad revenue for its lifeblood, or What'sApp customers should prepare to be mislead.

What'sApp currently doesn't collect personal information, and messages are deleted from their servers once delivered. Customers, however -- no matter how loyal -- have a way of deserting when the product they use changes materially.

The sudden appearance of ads (should they begin to occur) coupled with the Facebook's tendency to capture every nugget of personal information possible might prove to be offensive to What'sApp's 350 million users and Zuckerberg's shareholders.

Elsewhere, what better way to show that Vladimir & Country is still not quite ready for prime time than the brutal unrest in the Ukraine coupled with the video tweeted by the USA luge team member showing a wolf poking around the hallway of her hotel.

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