UNLOCKED: Sector Rotation Plays From My Live Trading Room

by | Nov 23, 2019 | Public Blog

>>Market Thoughts: IPOs As Value Plays<<

Last Saturday I wrote the above post to clients with a sector theme for the upcoming trading week. The theme was Oversold IPOs as ‘value plays’, meaning I expected them to pop from momentum rotation as oversold bounces.

Practically all of them moved higher, so I wanted to revisit the most successful ones with the prices I said the stock needed to stay above (1st number with >) as well as an update on the gain from CLOSE FRIDAY to CLOSE FRIDAY (with the high price recorded in parenthesis).

There were lots of set ups and I did not personally trade them all but I ran through each one every day for clients in my live trading room and offered up option tactics and stops for both profit and loss based on the underlying stock. The ones in green were issued as part of my Brokerage-Triggered Trade Alerts.

  • ADT >$8.30 : 8.47 – 8.69  
  • AVTR >$15.06 : 16.20 – 17.16 
  • AYX >$102.42 : 97.42 – 105.36 (108.75 H)
  • FSLY >$21.50 : 20.65 – 23.30 
  • MDB >$140.32 : 134.77 – 147.92 (152.33 H)
  • MRNA >$18.46 :19.37 – 20.69 
  • NVTA >$19.19 : 18.72 – 19.57
  • OKTA >$120 : 117.52 – 127.65 (130.20 H)
  • PD >$24 : 23.52 – 26.88 (27.84 H)
  • SMAR >$42 : 41.25 – 44.75 (46.12 H)
  • STNE >$39.45 (FRI EPS + 20%)
  • TTD >$216.58 : 229.15 – 243.71 (245.96 H)
  • TWLO >$100 : 99.54 – 104.29 (105.59 H)
  • UBER >$25 : 26.75 – 29.56 (30.13 H)
  • ZM >$71 : 70.01 – 73.16 (74 H)
  • PTON >$28: 27.23 – 29.36 (32.01 H)

My favorite was UBER because I not only saw the option activity enter starting the 14th last week, but I saw the volume of stock buying increasing while price didn’t move. It was a textbook case of accumulation before the news hit of Insider buying Thursday. By then, UBER had already moved strongly higher.

Given SPY hasn’t had a daily drop of more than 0.4% in six weeks and that 10 of the last 13 days the SPY has closed, up or down, by less than 0.28%, I’d say my Sector Rotation plays for oversold IPOs this week was well-timed and proves the saying, “there’s always a bull market somewhere.”

Have a great weekend!

Samantha

About Your Captain

Samantha LaDuc is the Founder of LaDucTrading.com and the CIO at LaDuc Capital LLC. As a Macro-to-Micro analyst and professional options trader, Samantha leverages her insights on volatility and money rotation to make her historic market-timing calls. With a backdrop of Macro, Intermarket, Quant, Fundamental, Sentiment and Technical Analysis, she provides risk-defined option trades for clients. Her focus is dedicated to identifying reversal and continuation patterns across global equities, currencies, commodities and interest rates.

Retail and Institutional (RIA/HF/PM) clients gain access to her unique perspective and unparalleled transparency. Tactical trades for stocks, options and futures that cover multiple time-frames are deployed directly from her Brokerage-Triggered Trade Alerts with live commentary provided from her Live Trading Room and in-depth analysis delivered in her prescient research.

LaDuc Trading/LaDuc Capital LLC Is Not a Financial Advisor, RIA or Broker/Dealer.  Trading Stocks, Options, Futures and Forex includes significant financial risk. We teach and inform. You enter trades at your own risk. Learn more.