Meta’s Beautiful Gap Setup — Once the Bleeding Finally Stops

I’m not a Meta fan — never have been. But when Meta Platforms (META) drops 12% in a single day, I notice. That’s a monster move for a company of this size. We’re talking real market-cap damage.

And META isn’t alone.

Anyone who’s been following me knows Microsoft (MSFT) is right in the crosshairs too, which tells you this isn’t a one-off. It’s a broader big tech sentiment problem.

What’s wild is that shareholders are now cheering on the same AI spending they were complaining about just three months ago.

One quarter they’re furious about the AI cash burn. The next, they’re begging for more.

That flip-flop tells you everything you need to know about how emotional big tech investors have become.

Why I Stay Away From This One

I haven’t traded META in probably 10 years — maybe longer. I honestly hate this thing.

When it was Facebook, I thought it was for junior high girls — basically the digital version of a yearbook. Now it’s for grandmothers and old high school buddies reconnecting.

The bigger problem is that CEO Mark Zuckerberg pivots whenever he wants.

The metaverse spending was a disaster. Then came virtual reality. Then AI. Shareholders keep getting whiplash.

One quarter they’re thrilled. The next, they’re panicking about the balance sheet.

I’m not interested in putting capital behind a company where the narrative shifts every time the CEO gets excited about a new idea.

The One Thing Worth Watching

I’m not saying there’s zero opportunity here.

Once it stops going down, META has a clean gap it’s going to have to fill. Violent moves like this leave behind technical setups — they always do.

But you have to wait for the bleeding to stop.

That’s not stability. That’s mood swings.

There are cleaner setups out there.

Go find them.

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Trade well,

Jack Carter
Jack Carter Trading 

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Disclaimer: We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading. Past Performance is not indicative of future results. On the live trades the results are an 80% win rate from 4/05/23 through 1/20/25 and the average return per trade (winners and losers included) is 22.70% per trade in a 6 day average hold time with an average winner of 52.76%.

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