Thinking about making a trade on The Trade Desk (TTD)? Here’s your trade! (May 15, 2017)


I want to look at The Trade Desk ( NASDAQ:TTD ) yet again. This actually has nothing to do with stock trading, although if it did wouldn’t that be cool? It actually has to do with ad campaigns, kind of a do it yourself thing. They had been squeezing here, I have talked about this several times, I believe in this venue as opposed to the just in the member section, but maybe not. Anyway, this was in a really nice squeeze; but then it is always risky to hold a stock over earnings. Although, don’t you wish you had done that on every stock? The stock gapped up and it has just continued to move higher.

This was Friday, massive volume, but then today there is a follow-through. It closed fairly close near the high of the day. It gapped up and then it traded around $53.00, $54.00 or so and that is pretty strong, twice the average volume. But I will say this, remember our 3 Day Rule where the big money buys on the first day of the move, and that is why there is so much volume here. The semi-big money, the semi-smart money buys on the second day, which typically leaves only the not so smart money to by on the third day. Now there are exceptions to that rule, like NVIDIA ( NASDAQ:NVDA ), which has a very, very similar pattern.

What I would do on The Trade Desk ( NASDAQ:TTD ) is this: Know that 30 percent of the float is short, and that is a lot of shares that are short. The stock continues to hit new highs, it is tough to buy right now. If you really want to get involved go ahead. And by the way, then keep a tight stop, like a little below 50.00. If the stock pulls back below 50.00 then it has clearly peaked and you don’t want to be long the stock. But if you already have a position I would set a stop on half of it right now at below 51.68, which is today’s intraday low, set it like at 51.40, something like that. If it hits 51.40 then that is a good time to be selling (I am setting this as a price alert, so members you will get this email taking you to this part of the video).

That is how I would trade this. You just kind of hold of the rest. Set a tight stop below the prior days intraday low, give it a little bit of room but not a lot, just a little bit. And then just ride this thing on. It is poised for a little bit of a rest, but we don’t know whether that is going to happen. Again, a third of the float is short so that means there are a lot of traders who are leaning the wrong way on this.

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