Good morning. At least today, we're starting to see the focus of the media pointing to some economic data here in the U.S. that has investors running for the hills, as initial jobless claims being higher than expected jumped to a new five week high. Is this cause for concern? It certainly doesn't help but it's important to remember that all economic data the government puts out is lagging in nature. Although data like that is among our only economic gauges that potentially hint to future economic performance, I think it's more important at this point to pay closer attention to certain key levels in the market. I think it's also important to remember Wall Street loves to climb a wall of worry, so we're not overly concerned about the market's action today, at least not yet. Advertisement Could This Tiny Stock Be The "Next Subway"? The folks at Penny Stock Research just released a free report that details 3 LEGITIMATE penny stocks that could soar in the second half of 2012. One's a tiny restaurant stock trading for 80 cents that's poised to become the next Subway... Click here to get the FREE report with all the details! Advertisement We mentioned yesterday that even if the NDX trades slightly below the 2500 level, that the weekly chart would still be intact and we're starting to approach the acid test here as the NDX has moved lower since this morning's open. If the NDX can hold just below that 2500 level, there's still a good possibility it's going to want to test that 3/8 retracement level of the selloff, which would put us at 2596 to the upside. That's a very tradable range if you want to take a shot at picking up some QQQ call options around 2597 on the NDX. However, I will point out here as well if the NDX convincingly breaks below the May 18th low of roughly 2475, you best cover up and get out of the way because our likely next stop may not be until 2434, which would put the NDX right at its 200 day moving average. I think using those levels provides a pretty tight landscape to have an opinion of this market depending on what it does here as soon as today or tomorrow. Everyone Hates FB Right Now. Just Hang Tight. We took a stand and made it pretty clear last week that among all of the social media stocks out there right now, we like YELP from a valuation perspective the most. However, if you remember correctly, we did mention that the social media stocks, which obviously includes the 1000 LB. gorilla Facebook, may not quite be done selling off for now and sure enough since then, they've moved lower. I think it's important to realize a few things here regarding the various social media plays out there. First, when everyone runs around cocktail parties preaching the new IPO opportunities of Facebook and others, that's a recipe for a selloff. Wall Street enjoys scaring the living daylights out of investors in an effort to test their intestinal fortitude and shake the weak hands of what may someday be considered cheap stock. This made the social IPO's even more of a target because their very own culture of exponential advertising through their very own social media networks that made them so popular to even become as big as they are. Guess that's the double edged sword and nature of social media. If something bad starts to happen, it becomes magnified and same goes for the flip side. I was among the first out there telling all of my friends and colleagues to stay away from FB. YELP,on the other hand, I like. Even though it's lower from our original entry, I still like it as that stock isn't a trading idea per say as much as I think it's a long-term investing one. Even Facebook is going to get to a level that will likely start attracting some significant interest. From a trading perspective, I'll stick my neck out there and provide you with a number that I think FB may reverse course. I'll peg the $24 level as a key turning point for the stock, at least for the short-term anyway. As I type, FB shares are approaching the $26 level, so we're not far from a potentially nice short-term trading opportunity. If I end up being right, I'll tell you how I came up with that number. If I end up being wrong, I'll probably just not bring it up. Ha. Just kidding. I think it's also important to remember that the Street is ultimately going to decide when it's time for FB and other social media stocks to turn around, and when they do it's likely going to be parabolic for all of the reasons I've mentioned here already. So, if you're looking to invest long-term in some of these plays, we're starting to get much better discounts to their initial IPO prices. That's a good thing for us and not a good thing for those who bought those IPO shares during the first few days, weeks and months of their initial offerings. Let's continue to be patient with these social media stocks, they are going to have their day, that day just isn't right now.