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Despite Facebook Earnings, Our Base Case of Violent Upside February Move Remains Intact

Markets were roiled by the Facebook earnings miss this week. The stock declined around 26% yesterday in response which was the largest single-day decline of market-cap ever. Despite the market’s harsh reaction to that big miss, we still see the most likely outcome as a violent upside rally in February 2022. Remember we went over three reasons why we say an upside rally is likely earlier this week.

Retail investors raised cash at the fastest pace since before the pandemic –> contrarian...

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