I am more a momentum trader than a dip buyer, but if you are looking for quick trades trying to catch a quick turn can be a great strategy.
FN is of particular interest because it looks like a pure "sell the news" situation. The company announced solid earnings last night and several analysts raised estimates and price targets. The stock is in the very strong "optical" sector and had been running up nicely in sympathy with Acacia (ACIA) , but it reversed sharply after the gap-up open and probably triggered some stops and panic selling. I've averaged into a position and will look to add more as it develops.
MEET is a different situation. It sold off strongly yesterday, but then today an article by a short seller appeared on SeekingAlpha.com. Someone obviously knew yesterday that this was going to hit. The main thrust of the article is that mainstream advertisers are unaware that their ads are appearing on pages that may be sexually provocative. The headline is very provocative and the price target very worrisome for bulls.
While the claims do seem quite sensationalistic, I'm not convinced that there is anything new here or that the situation is anything unusual or surprising. The way internet advertising works, the content on the pages isn't as meaningful as the demographics or page views. The article offers no actual proof that MEET is a "den for sexual predators", as the headline says.
I've started averaging into MEET around $4.95 and anticipate there will be a bounce as the company eventually defends itself.
Overall, the indices are struggling a bit today and momentum has cooled, but so far it is nothing more than some routine profit taking after a good run.