SnapChat (NYSE: SNAP):
8 November 2017, Wednesday, 5.10pm Singapore Time
(Click on Technical Chart Above to Expand)
Attached is the technicals for SnapChat (NYSE: SNAP) using Professional DNA Volume Analysis. The first trading day of the IPO set up a benchmarked $17.00 for future reference as to whether this stock was a pump and dump distribution stock or a quality accumulation stock. The $17.00 is a high volume support formed by the base of the bullish white candle. As it turned out, this stock suffered a breakdown in July 2017, weak rebound in August and September 2017 and a high volume green bar that merely back-tested the resistance as a resistance volume (green bar selling volume). This becomes a technical certification that the stock is a sell-stock and the IPO had been pumped and dumped.
This is an example of a stock that hedge funds industry use shorts on thrashy weak stocks to hedge their portfolio of quality longs and investments.
When markets are down, the quality portfolio will not correct down too much, but such weak stock will be hammered; and if markets are up, such weak stock will not go up much and the rest of the quality stocks portfolio rally up in value.
The nett result is low risk committed and high rewards virtually assured.
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