Here's Why Facebook Is The Only 'Constructive' Name In Social Media

Scott Redler is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

T3 Trading Group Chief Strategist Scott Redler called Facebook Inc (NASDAQ: FB) the "only constructive-looking name in social media." However, the stock is stuck between levels of support and resistance at the moment.

For support, the stock should see buyers at $91.80, 2 percent below Monday's closing price of $93.93. Conversely, if the stock rises, it would need to break above $96 per share to get some "momentum" behind it.

Redler also said there was a lot of money "hidden" in Facebook, though the analyst did not qualify further.

Four Horsemen

Redler labeled Facebook as one of the "Four Horsemen" that could move the broader market higher in the near term. The other three are Amazon.com, Inc. (NASDAQ: AMZN), Google Inc (NASDAQ: GOOG), and Netflix, Inc. (NASDAQ: NFLX). Of these, Netflix and Amazon have outperformed the rest, gaining 157 and 72.5 percent this year compared with 25.5 and 20 percent gains in Google and Facebook, respectively.

In addition to the best-performing stocks, Redler said that a market rally also needs laggards doing well. Redler said that it was constructive that the Energy Select Sector SPDR (NYSE: XLE) and Consumer Staples Select Sect. SPDR (NYSE: XLP) were not making new lows, despite headwinds.