An update on Roku (ROKU) and Angie’s List (ANGI) (February 22, 2018)


I want to go back to what I was talking about last night in this Chart of the Day, which is Roku ( NASDAQ: ROKU ) and Angie’s List ( NASDAQ: ANGI ). I was saying both of them were buys at the open probably but for different reasons so let’s just go through them.

Roku ( NASDAQ: ROKU ) gave kind of a tepid guidance, worse than people thought so the stock gaps down, stock trades down to around $40.00, so you can see this here. We traded this in the forum and people made some pretty good money on it. The idea here is that you are buying the stock when you get the sense that the selling is over. You don’t let all the overhead resistance bother you. Because the idea is the stock is down so much it is like a rubber band that is stretched so tight it is going to grab all of these sellers and push people out of the stock.

Then once the stock stabilizes you don’t know whether the stock is going to move higher; you don’t know that. It could do this, it could do this, it could do any number of things. But when you see the stock holding up right around here you have a pretty good idea that the stock is NOT going to start filling this red box. So you put your stop down there. Buy the stock; as the stock moves higher and rewards you, you build your position higher and higher and then all the while raising your stop along the way; hopefully not too tight and hopefully you don’t get stopped out.

Anyway, by 11:00 you should be out of this trade. Even if you just bought here and then sold at 11:00 you made 5 or 6 percent on that trade, on a really easy trade. If you were trading it a little more actively you saw this squeeze happening. This stock moves here, maybe you are selling some but somewhere up here you are selling, probably even here. I think this is where I exited the last part of my position, on this first pullback. I did not sell at the high. I don’t try to sell at the high I just kind of sell when I sell; when I am happy with the trade frankly.

And then ANGI ( NASDAQ: ANGI ); this was popping out of a squeeze, still kind of is. Very, very high short interest so that is a short squeeze that just begs to be bought. At this point frankly, I think it is noteworthy that the stock, after the kind of move that it has had, that the stock is only down 8 cents. So if you are long this stock I don’t really see any reason to sell it but just know the market is really, really nasty. Frankly, at least it is on some of the stocks that I am holding, maybe I am the only one.

I would suggest pulling in your horns a little bit. If you bought this stock definitely don’t let it turn into a loss. Try to give it a little bit of room to move because one day’s little 8 cent pullback does not end a rally. Generally speaking, the stock is lifting higher so stick with some of it if you want. All I am saying is, DO NOT LET THIS TURN INTO A LOSS; you can’t do that.

Free Chart

Leave a Comment