Snap’s Post-IPO Stock Spectacle: How Strange Is It?
With just under a month of trading under its belt, Snap (SNAP) has had more than its share of ups and downs since it debuted on the New York Stock Exchange.
Snapchat’s parent company took off with a bang as shares rallied more than 44%, but the stock was volatile in the following days and weeks, seemingly at the mercy of Wall Street analysts’ ratings and initiations.
Over the next two weeks, the stock plunged to an all-time low on the back of multiple sell ratings from analysts, before recovering on Monday this week when 10 of Snap’s underwriting banks gave it a Buy rating.
Snapchat is becoming a search engine
Facebook has spent the better part of a year copying key aspects of Snapchat’s products; now it seems Snapchat is returning the favor.
The “camera company” announced today that it is revamping the way users search for Stories—the daily photos and videos that people and brands post to their accounts—as well as opening up a new advertising revenue stream.
Why Are Analysts Suddenly So Bullish on Snap?
Snap stock just got nine buy ratings. But pay attention to who’s behind them.
For the first three weeks or so following Snap’s (NYSE:SNAP) IPO, almost no Wall Street analysts gave the stock a buy rating. The company suffers from a ton of uncertainty around the high-growth expectations of investors. Of the first 19 analyst opinions to come out on Snap, just three said the stock is a buy.
That changed this week when analysts representing the banks that underwrote Snap’s IPO issued their own ratings. Those banks were overwhelmingly positive on the stock; nine of the 10 analysts from […]
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.
On the Tape Today | 4-3-17
TSLA | Tesla Inc showing a clean pause on light volume after a bullish gap. Resting comfortably at the $280 level. Consecutive melted candlesticks after well-bid momentum sets up a new swing trade. Game planning a $281 buy-stop with an initial target of $299. Stop loss on a close below $278.
LULU Lululemon closed strong after a disastrous earnings gap lower. looking for a resumption of the selling today with a short-sale below the low of the first 30 minutes. If not filled cancelling the trade and game planning a limit order to sell short @ $53.75.
Tape Reading the SPY ETF
$SPY price action collapsed at the close on Friday and produce a “bearish u-turn.”
This creates a lower high on the daily chart as the $236 level held as resistance. Volume continues to record low numbers which should reduce your share size. It’s hard to have conviction without volume or clear order flow.
The bullish order flow that began after the Presidential election remains intact but has serious cracks. Bullish trades have lower profit potential and a short-sale is not confirmed yet. I know many trader switching to scalping mode, something I believe to be a mistake.
Switching your core strategy to match the current market conditions gives you nothing but more frustration. Lower profit potential should not make you switch to lower time frames. Whether swing trading or scalping, you must demand a clear bias before you accept risk.
I will admit, I made this mistake earlier in my career. it sounds great but switching to scalp trades doesn’t change the fact that the stock market bias is cloudy. Remember– we must demand a clear answer to this question… “Is order flow obvious?”
The fact that you changed strategies to match the market means the answer is no.
Sure you can come back and say “but my regular strategy is scalping.” That’s fine, but you still need volume, without it, you are getting bounces around, and stopped-out like crazy. A potential change of trend drains trading accounts because you don’t see it until it’s over.
Improve your stock picking skills or stay in cash. Live to trade another day if you’re getting beat up.
Scroll down for today’s best trading ideas.
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 4-3-17 | Monday Edition
Bullish Momentum: BIVV, RH, LNG, CARA
Bearish Momentum: fnsr, thc
Long-Term Order Flow
Bullish Order Flow: BIIV, RH, AMZN, CC, AMT, ADBE, WYNN, DIS, TIF, ETN, NFLX, CCI, AAPL, FB, MAR, PM, EA, WDC
Bearish Order Flow: mnk, oxy, fslr, esrx, lb, prgo, panw, slb, lulu
2X Normal Volume: LULU, MOMO, CARA
Inside Days: pten ,adi, payx, pfe, c, cop,, wfc, fb, cog, esrx, hal, gps, schw, aig, aa, pypl, met, nflx, jci, coh, unh, stx, hd, clr, cof, bhi, aet, kors, nvda, wdc
Become a Better Trader. Get Notified.