Here’s How I’m Trading Snap ($SNAP) (September 22, 2020)
SNAP TOL LEN DHI TMCO TMHC MTH PINS VSTO SNAP BA JPM SNAP
I want to just look at Snap ( NYSE: SNAP ) today. The market, generally speaking, I am just kind of looking at the major averages, the S&P, the Nasdaq, it is still under pressure; it’s kind of just a general distribution selling. You can attribute various things as far as being the cause of that. I just look at kind of a general sense of uncertainty.
We are going to have a lot of political uncertainty for quite a while; the best way to describe it is just that. Nobody knows what is going to happen; everybody thinks they know what’s going to happen but nobody really does. We will just kind of say that its political uncertainty. Fine, so we understand this.Let’s focus on the stocks that just work, that are just working. On our Growth Stock List, we have 7 stocks, actually 6 because 1 of them we got stopped out today on. We have 6 stocks that are working really, really well despite this political uncertainty, the weakness in the broader market, etcetera, etcetera.
What we have found is that just focusing on the stocks that are working as opposed to all of the bull spit and everything else that people are spewing, like purporting to know what the hell is going on, most don’t. Those that do really aren’t really saying anything so we just focus on stocks with chart patterns like this; I’ve got a ton of them. I just talked about Toll Brothers ( NYSE: TOL ) yesterday. We’ve got Lennar ( NYSE: LEN ), we’ve got DHI ( NYSE: DHI ), we’ve got Taylor Morrison ( NYSE: TMHC ), we’ve got Meritage ( NYSE: MTH ), the hits just keep coming. There are all kinds of stocks like this and what you need to do is focus on a pattern that you understand.
These are all stocks that are just absolutely crushing it irrespective of all the crap that’s going on in the broader market; these are the ones that you want to focus on. Don’t think about; Oh well, Boeing ( NYSE: BA ), I can buy Boeing ( NYSE: BA ). Yes, but look, whatever, if you want to buy Boeing ( NYSE: BA ), go for it. But we just want to be in stocks that are working and that are working now.
My goal as the “mentor”, the main dude at Stock Market Mentor, my goal is to help you make money, that’s my primary reward. As I always say, “The subscription fees are nice; thank you very much, I would not be doing this for free.” But my greatest reward is helping people make money. And the way I can help you make money is not telling you to buy Boeing ( NYSE: BA ), it’s a good value, it will come back. Or buy JP Morgan ( NYSE: JPM ), the banks are under pressure but when things get better I’ll be there. I will have already owned this and that will be great. Who gives a rip about that?
Get the stuff that’s working now ( NYSE: SNAP ) and not just the stuff that’s working now but literally shows promise for moving higher like today, tomorrow, next week into next month. Stocks that are giving you this kind of trading action, identifiable resistance, a rising series of lows to where the stock is kind of tightening here. That’s basically what has happened here.
And so then what have we got with Snap Chat ( NYSE: SNAP )? We get a pullback on Friday and then yesterday a gap down to test the 50-day moving average. And since that time this thing has been going up. I think this is a buy right now. It is actually a buy a while ago, which is when I bought it. This is a buy right now because this looks like it’s coming out of a base. And hey, even if it just gets up to $30.00, that’s over 15 percent, I’ll take it. So you are buying the stock here, giving it a little bit of room, put a stop below today’s intraday low.
The idea is, that as long as the stock stays above where it opened today then this breakout is real and you want to be long. So if you are doing that then your risk is actually more manageable, about 5.5 to 6 percent. So this is the trade on this and then you just wait patiently for the stock to keep working.
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