james ramelli is with keeneonthemarket.com. everybody was waiting for earnings numbers from facebook. late yesterday they reported. what do they tell you? >>they beat on both top and bottom line estimates but the stock sold off initially. the options market was implying that the stock could sell off as much as $5, giving us a downside target right in that $56 region. so that's a level i'm going to have to keep my eye on until the close on friday. one of the interesting things that we saw in this earnings report was that their cfo is stepping down and is going to be replaced. that's a little bit unsettling for investors considering the massive amount of cash that facebook has burned through this past quarter in the acquisitions of whatsapp and oculus. like i said, they were implying $5. the stock didn't quite move that much but that is definitely going to be a level to the downside that i have to keep my eye on. >>i'm wondering why they would announce that right now? this is one of the worst times to make such an annoucement. >>

last but certainly not least on our show this morningjames ramelli of keene on the market dot com. what will you be watching for this week? there's a lot of data coming in. >>right, we have a lot of data. monday saw the stock market broadly higher. i don't think we were all that surprised by that move. it was the last day of the quarter and i think that fund managers wanted to show that they were long over the past quarter because the market did end up higher. we've been seeing the spy trading in a range about $5 over the past month and i think we're not going to see a breakout of that range until we get to the employment situation this friday. its been a very choppy past month in the market. we're going to wait for this number until we find some real direction. we've been pricing for a turnaround in the data for the spring. we're at the point now where if we get a bad number we can't really blame the weather anymore. i think this is going to be the most important employment number of the year. >>this has truly been a market without direction. as you mentioned there could be a brea

james ramelli of keene on the market.com is getting ready like many traders for those earnings coming from alcoa tonight. good morning to you. what do the charts have to say about this stock james? >>the charts are actually telling a relatively bullish story. the stock is just off of its 52 week highs and is trading in relatively bullish territory. however the options market is telling us that the stock can move 70 cents higher or lower by this friday's expiration. historically alcoa is a weak performer on earnings day. it sold off 5 out of the past 8 quarters. so on a risk versus reward basis, i think that setting up for a short here in alcoa going into earnings is going to set up better for me than being long the stock. >>i'm sure you noticed the stock was holding up relatively well despite the plunge we've had in the market over the past couple of sessions. >>absolutely and that tells me that the market is really pricing in some good earnings in alcoa. if they miss or maybe even come in line, i expect the stock to fall. especially if it's a relatively weak performer on earnings day

james ramelli of keene on the market.com is standing by with today's chart talk. good morning james. > >good morning. > > what do you think about some possible stocks to pop this spring? > >i think that a lot of these social media and tech stocks that have gotten beaten up through the first part of the second quarter are starting to represent good value. when markets get frothy, it's important to look for value in stocks. i don't want to buying into charts that look overbought. one really good example is yelp. we saw a very strong year out of them. they're not yet a profitable company but momentum has been to the upside. stocks like that that have come off quite a bit from their highs could start to represent good value. like i said, when markets get choppy and people are uncertain, it's prudent to look for this type of value. > >what other names do you like and what do you see in the options market? > >pandora is another stock that made a really nice run in 2013 but may have gotten beaten up toward the second half of the first quarter or the beginning of the seco

trader james ramelli of keeneonthemarket.com joins us now to break down a couple of trades. good morning james. >>good morning. >>let's start with twitter. what was your reaction when you saw the earnings report? >>twitter has come off quite a bit this yearkind of a victim of the pop in the bubble in momentum stocks. the numbers that they reported tuesday night actually weren't that bad. but because the stock has been so weak i think for the stock to get a lift, traders really wanted to see them beat and beat by a lot.they beat on top and bottom lines but the market said not good enough and the stock got crushed initially on earnings. they were implying that the stock could sell off as much as $6 by this friday. i think it can move every bit of that $6. they're implying about $8 through the end of may. the chart looks broken. it does not seem like traders like the earnings announcements. i think the stock is probably going to head lower and i would be looking to get short on any rally in twitter. what would be your play here? give us a play using options or not. >>i went int