Looking for direction on Momo, Inc (MOMO)? Here’s your level. (August 21, 2017)

by DAN MOMO 
We are looking at Momo ( NASDAQ:MOMO ), the Chinese Facebook I guess is the best way to say it. They report earnings tomorrow morning, and there is no other way to say it, this is a really high-risk stock. I have been in and out of it and I will be honest with you, I don’t own the stock right now and so tomorrow morning I may either wish that I did or be happy that I didn’t. I am just letting you know, my sense is that I am probably going to wish that I had.

This stock has been coiling in this tight range for quite a while. Here is really your trade: Some of these Chinese stocks have been really, really gappy, very gappy. If the stock opens up above $47.00 and stays there for the first 5, 10, maybe 15 minutes or so; if it opens up above 47.00 and stays there this is a stock that you want to buy. It just has to stay above this level because this is where the stock has been contained before, that is just the way it is.

Anyway, that would be it for my analysis. Wait for the stock to break out and then buy the stock and keep a stop a little bit below 47.00. Now, there is no way I can predict the future. If the stock gaps up to $54.00 don’t be buying the stock and keep a stop under 47.00 and then say, “Fitzpatrick really got me screwed on this one.” Be prudent. If the stock pulls back then I think you just avoid the stock and let it gather. Because any pullback just puts it right back into congestion here. So, use 47.00 as your line in the sand; the stock needs to stay above that.

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