Here is what I’m (still) doing on Snap ($SNAP) (September 24, 2021)SNAP PLTR
I want to go back and look at Snapchat ( NYSE: SNAP ). Over the last week or so we’ve been looking at Palantir ( NYSE: PLTR ), which has done really well. And then I also covered Snap ( NYSE: SNAP ) a time or two. But here’s the thing, I have got to tell you, this has been an awesome performer. I put this on my Active Trade List; I was looking at this, the way it was squeezing here. I’ve got all kinds of boxes and stuff that we draw for our members.
Then here, when the stock started to move up, you look at the volume, this was a pretty big volume spike and that is after this massive institutional rush in. And so you’ve got all of these institutions buying the stock. The stock drifted sideways and so then what you are waiting for, there is no way this is not institutional buying with more than 100 million shares traded and the shares are at $70.00, $80.00, that’s a lot of money coming into this stock. That’s institution, it isn’t Robin Hood.
Then the stock stays steady here, more institutional support, and then what you are looking for is some signal that institutions are coming back. And so this is what we got last Friday, get into the stock then and then you see the stock boom. It was down here on Monday, think about this, it closed here, it gapped down here over 3 percent. It traded as much as 6 percent down so that pretty much negated everything here, but then it came back and the next day we’re back up.
These are all signals, this is all an indication of institutional buying, institutional activity. They bought the stock here and then the next day they said, I don’t want to keep buying it here, I am bidding against myself. And so they take their foot off the gas, the stock comes back down a bit, not too much, not out of the pattern. And why is that? Well, because they are buying the stock. And so the price comes down, they are going to buy it.
And then there is also, it’s not just one institution that is buying Snapchat ( NYSE: SNAP ), there will be several of them. Good fundamentals. Good earnings, What’s not to like about this thing? And seriously, what’s not to like about this? The company is solid. So you’ve got multiple institutions wanting to get this stock and they are not all going to sit back and instant message or tweet, direct message each other, and say, hey, let’s not buy it yet.
So instead, everybody is looking at it and they start to dip a toe in. They say, we hope the stock goes down more but we don’t want to miss the boat if somebody else starts snapping up the stock so let’s go ahead and take a little bit more, so they buy a little more. And that is known as institutional support. This was on Tuesday, well wait there is more. Then the stock, once again, gapped down and then ran up, huge volume, more institutional buying. This is not hard.
And by the way, it’s not predicting it’s assessing, it’s analyzing, it’s looking at a chart. The things that I am telling you are not complicated, they’re common sense. But they are only uncomplicated and they are only common sense when you understand it when somebody has explained it to you. So great, you can thank me later. This is Wednesday, a nice big move to the upside. Thursday, yet another higher intraday low, higher intraday high. It’s kind of like this one was to this one. And this one was to this one. And then we’ve got this up here to this one. This up here to this one.
So we have this series of higher intraday lows and higher intraday highs. Heavier than average volume, this takes us through Thursday. And then what do we got tomorrow, meaning today? Boom, this is the biggest move here. A huge move, almost 30 million shares traded. And then you look at this and say, well shoot, I think this stock is just going. I think this is going to continue to move.
You look at it on the weekly chart, what’s not to like? What’s not to like in this stock? This is the kind of thing that you can build a pretty big position in over not that long a period of time. And the reason I say that is because of all these different support levels. So you are buying some and then you are treating that as a separate trade. And then you are putting a stop in to protect that last buy. And then if the stock pulls back you go, crap, I got stopped out of that but you’ve still got your position.
What you are doing doesn’t impact the stock. What the stock does impacts what you are doing. What I just said is really important. And then when the stock continues to go up you do it again. I bought this 3 different times today, 3 different times, I added to my position each time. Staggered stop. Each time I put a stop up to protect that. So anyway, you can be doing that stuff too. Again, this is not hard but it just takes some thought. Turn off the idiot box, put your phone down and really do some thinking while you are looking at this chart and you can see this stuff too.