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.
