Snap Chat (SNAP) debuted in trading on Thursday, listed at the New York Stock Exchange. It had priced its IPO of 200 million shares at $17 each. Shortly after the opening bell stock began trading significantly higher, eventually closing at $24.48 per share – up 44 percent on expectations.
If you are considering trading SNAP, understand there are professional traders swimming in the same water, eager to take your money. Use the 9/20ema rule and a stop based on same. Note, scroll to the 1:00 min mark to skip the advertisement. SNAP is trading slightly above the 9/20ema, at 25.35 in the pre-market, as we can see on the daily chart. A primer on the “Art of IPO trading” by Scott Redler.
SPY daily
We are anticipating a short lived pullback, as TICK cumulative shows investors and institutions are still buying as it rises. Look for support at the rising 9ema and a gap fill. Until we lose this important moving average we cannot assume we are changing trends. The most we can anticipate at this time is a pivot high.
We will be LIVE pre-market and for the opening bell.
Good luck today.
Vinny
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