While $SPX has reached a new high Friday, top 10 IPOs have been plunging since July:

 

As crazy as this may sound, IPOs may qualify as “value plays” given how much they have fallen this year. Given the out-sized moves on Friday, I decided to dig in a bit more to see if this may be a tradable theme, long, moving forward.

My most recent intermarket analysis work may indicate that the relational strength of IPO etf to SPY is basing and forming an inverse head & shoulders pattern which is bullish. In which case there could be some large-sized moves potentially occurring into year-end.

 

Case in point: Wednesday/Thursday in my live trading room I called out CRWD as a chase to the 21D around $50/51 and once there it needed to stay above to swing long. Friday it exploded up 13% to close near $60.

Others like LK shot up 25% in one day and earnings were 2 days prior.

ROKU ran 5 straight days at about +5% each day, up 33% from it’s earnings low on Nov 7th.

With that, I went through and studied popular IPO charts for both technical and option price action. There’s a lot to like on both fronts.

Here are some good looking bullish charts IF price can close and stay above the following levels on a Weekly timeframe… And this market doesn’t roll over and take these IPOs down with it:

  • ADT >$8.30
  • AVTR >$15.06
  • AYX >$102.42
  • BYND >$85.45
  • CRWD >$58
  • FIVN >$59.58
  • FSLY >$21.50
  • FTCH >$10.41
  • GH >$75
  • MDB >$140.32
  • MRNA >$18.46
  • NVTA >$19.19
  • OKTA >$120
  • PD >$24
  • SE >$38
  • SMAR >$42
  • SPOT >$150
  • STNE >$39.45
  • SWCH >$14.37
  • TLND >$34.60
  • TTD >$216.58
  • TWLO >$100
  • UBER >$25
  • VEEV >$157
  • WORK >$23.25
  • ZM >$71
  • ZS >$48

You will likely see me trading in and out of these over the coming days and/or weeks.