There are a plethora of so-called “experts” running to and fro commenting on why Facebook® the former darling of the IPO (Initial Public Offering) investment world dashed all their hopes and dreams. Most are missing the point in my view because it was pretty clear to anyone whom looked at their developing love affair without the rose-colored glasses. All one needed to do was put down the rose spectacles and view the model through the prism of business for a clear view. The business model showed cracks right from the beginning.

Let me state right here that I have great respect for Mr. Zuckerberg and what he’s accomplished, and is still trying to. However as of today the IPO and business model that was used to bludgeon anyone critical of its claims is currently trading not only lower, but near half its original price. For those expecting to be rich by year-end they now might be facing losses of nearly half their money, and quite possibly more. But what’s the real reason why? Here’s how I see it…

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Further to my last weekly market update, this week's update will look at the six Major Indices and nine Major Sectors in a very simplistic Year-to-Date line format, as shown on the two chartgrids below.

I like to look at this type of format when I get confusing signals from short-term, day-to-day choppy, whippy, and volatile price action in tight ranges. My conclusions will be based on the daily closes, rather than on candle highs, lows, and closes.

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I have been delighted to witness the growing popularity of my new web site, SocialTrade. It’s apparent from the usage figures that people are making it a daily habit. Since I can’t leave well enough alone, I keep adding little features to it.

One is very small, but to a hung-up sort like me, it matters – the buttons are nice ‘n’ tidy now:

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