Trading The Trade Desk (TTD) or Palo Alto Networks (PANW)? Here’s your plan. (February 28, 2017)
TTD PANW
I want to look at a couple stocks here. First of all The Trade Desk ( NASDAQ:TTD ). We first looked at this stock in Stock Market Mentor, not here, although I think Bridget was tracking this on the squeeze. When it started breaking out here I am getting these pings from Bridget, that one of the IPOs is starting to hit all-time highs. This is the buy signal on this type of thing. When the stock initially comes out it is going to print what I call and enthusiasm high. It peaks, and then it is going to go do what it is going to do. I might take a year, it might take 5 weeks, but ultimately the stock is going to grind around here, ultimately come back to this high.
Once it breaks out above this level, now we are in blue sky territory, everybody is a winner. So this is an IPO trading strategy. It is not difficult, I have kind of explained it to you. That is, once a stock gets through the enthusiasm high, ultimately moves back up there, then this is our support level here. The stock shouldn’t come back below this level and it is likely to move up pretty fast. Pretty fast, because nobody is selling, everybody is happy. Happy, happy, joy, joy.
So today this is up further and the reason I am pointing this out to you is because, members if you are in this stock you should be keeping a trailing stop on your positions. You can see on this 15-minute chart, the thing had a big print after market. But the idea is, you want to be riding this up as much as you can, but don’t ride it too far it is not just going to keep going to the moon. If you are an active trader and you feel like there is still more to go, go ahead and take some stock, but just know that it is already really, really extended. But I just wanted to point this out to potential new members, because this is a strategy that works really, really well for us.
Now, lets talk about another one, Palo Alto ( NYSE:PANW ), web security. Apparently not a big mover for these guys this year. This gapped down 20 percent on earnings. I think they barely beat estimates, which wasn’t enough so now the stock is back down here. What I am going to suggest you do, we have had pretty decent results with this type of move recently, I even took Target ( NYSE:TGT ) for a little ride this morning, but when a stock gaps down this much a lot of times you are going to see this retrace. And this COULD, it is not guaranteed, but it could give us a good opportunity to buy this for a little 59-minute trade, a pretty short-term trade tomorrow morning. So if you are a member be in the Forum and I will walk you through this because that is what I am going to look for. It may be a trade, it may not be. It may turn out to be a really good trade. But if there is no money to be made we are not going to try to force it.
Free Chart