Stocks to Trade 3-6-17 | SNAP-Snapchat 30B Market Cap

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SNAP | $30 B Valuaton

Investors are going nuts for Snapchat — here’s how Snap thinks it can turn a $500 million loss into profit

Investors are going crazy for Snapchat parent company Snap, and the stock is up more than 50% since its Thursday IPO, with a market cap of more than $30 billion.

But Snap is still losing a ton of money — to the tune of $514 million in 2016.

businessinsider.com

It’s No Secret: Retail Investors Love Snapchat

Whether or not you believe in Evan Spiegel, Snap Inc’s SNAP highly anticipated IPO is seeing unprecedented demand from retail investors.

Institutional Investors? Not so much. Stockpile, a full service brokerage that allows you to give shares of stock in the form of a gift certificate, saw incredible demand for Snap shares on Thursday.

benzinga.com

How Snapchat Built a Business by Confusing Olds

As Facebook has transformed from a slightly wild place to a communications tool for parents, teachers, and heads of state, Snapchat’s more playful ethos, and the fact that anything posted on it disappears in 24 hours, has made it the looser, goofier social network.

bloomberg.com

Is Snapchat Really Confusing, or Am I Just Old?

There is no excuse, at this point, for a professional technology writer to be confused by Snapchat. It has something like 200 million active users. It is, by some metrics, the fastest-growing social app in the world.

It has been the subject of Wall Street Journal think pieces, Forbes profiles, and how-to guides for panicked parents. It’s 2015, for Zuck’s sake, and Snapchat’s basic functionality should be old news by now.

slate.com

How Successful Traders Think

Download this free 19 page e-book today and join me as I review an email from a struggling trader and give some advice on how to get back on track.

Today’s Trading Lesson…

How Do Find Conviction for Your Trades?

Confidence comes from conviction. Feeling assured gives you a reason to accept risk. When you believe in your analysis, you buy or sell like a pro. When you aren’t 100% sure, you buy or sell with hope.

Hope is the worst reason to accept risk, but we have all relied on that game plan at some point. So how do you produce confidence?

The answer lies in commitments by the institutions.

How much money have the institutions committed to your idea? How long have the been active? One week? Two weeks? I would call that momentum. The lowest form of commitment. Less commitment, less conviction.

What happens after momentum? Does your stock pause and hold? If so, now you wait, the real game begins. The longer the bias, the more money committed.

The more obvious the bias, the more confidence you should have. It’s that simple, but not that easy. It’s not easy because it’s hard for you to be patient.

When you learn to defeat that demon. When you learn to look for commitments in order flow, you immediately become a better trader. The quality of the idea is the real risk.

Momentum is a valid trade but it’s fleeting. Order flow is king.

On the Tape Today | 3-6-17

$COF 3-6-17

$COF 3-6-17

COF | Capital One Financial filled the gap and produced a day of indecision. Game planning a lower open today to find support so I can be a buyer. Best case scenario comes on a push lower off the open into the $93 support. Looking for an entry signal on the 15 minute chart with the stop loss below the low of the day.  $95 profit target is the objective.

RRC | Range Resources producing a clean pause with room to go on the short side. The game plan calls for a $26.75 sell-stop and a swing trade target of $22.50. If filled on the short a stop-loss above $28.

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$SPY 3-6-17 Hourly Chart

$SPY 3-6-17 Hourly Chart

Tape Reading the SPY ETF

$SPY produced another yawn on Friday, a melted candlestick on light volume.

A decline to the $234 area creates a solid opportunity to buy. Last week we called for this decline and so far, so good. As of right now we continue to look for, and see profit-taking, not distribution.

This price action/volume gives the stock market the healthy pull-back needed for another leg higher. The only question that remains comes from last week’s speech by President Trump.

Was that the ultimate “sell the news” play? Not yet, but it was a sweet reason to take profits.

We don’t see heavy volume, until that changes, continue to look long with conviction. But…make sure you bid with support. The decline is expected, and good, but bidding into the falling prices requires a reason.

Change from the open or a positive current hour, gives you the conviction necessary to place the bid.

Stock Market Today: Heatmap of the S&P 500

$SP 500 3-6-17

$SP 500 3-6-17

Stocks to Trade 3-6-17 | Monday Edition

Short-Term Trading Momentum

Bullish Momentum: MNST, TMUS, ONE, LUV, AAL, HTZ, MET, INCY, UAL, FNSR, EXEL, SRPT

Bearish Momentum: twlo, prgo, sm, eqt, kors

Quarterly Order Flow

Bullish Stocks to Trade: INCY, AMGN, CELG, AET, CTXS, GS, PRU, AAPL, UNH, AVGO, FB, PNC, AMZN, HD, COF, BA

Bearish Stocks to Trade: sm , eqt, lb, yelp, kors, hes, oxy, rrc, apa, trip

2x Normal Volume: COST, ADSK, MNST

Inside days: bac, ge, wfc, csco, jpm, ko, ms, bmy, cat, schw, amat, gild, bby, symc, abbv, v, jnj, hal , vlo, moc, wdc, avgo, d, tjx, tsla, cag, tso, khc

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About the Author

Pete is a full-time trader and mentor since 2000. Author of Equity Trader 101 and the Order Flow Method. He is dedicated to help self-directed traders to bust through the six-figure level.

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