Here’s what we did with Snap ($SNAP) yesterday…and what you can do tomorrow. (September 22, 2021)SNAP
I want to look at Snapchat ( NYSE: SNAP ) here, I have a couple of different reasons. First of all, I still think this is buyable. It had a really nice move today after an initial gap down, which you actually like to see, not the gap down but the recovery, that’s really what we are looking for. So the stock gaps down, as many stocks did, over 3 percent. But then immediately it started rallying. It opened at 74.06, it traded down 4 pennies before rallying up. This was really good price action today and it occurred on almost twice average volume, so this is still working.
You can see where I added it as an active trade on our Active Trade List. But what I want to talk about here is annotating your charts. I do this on all of my trades, where I bought, the day that I bought, and then where the stop is. I will have a tighter stop up here, I will show that here, this is down less than 5 percent, about 5 percent we’ll say. And then I will also say, if you just want a longer-term holding period then you keep one even lower there so it allows us to plan for going forward.
Anyway, I like Snapchat ( NYSE: SNAP ). I don’t have a Snapchat ( NYSE: SNAP ) account and actually don’t plan on it. I do have a Facebook ( NASDAQ: FB ) account, though I don’t know my password, and we only use it for marketing. With Snapchat ( NYSE: SNAP ) what I do like is the chart, and so I think, again, I think this is still buyable. Your risk would be a little bit obviously higher than if you had bought lower in the move here, but you’ve still got a month before the earnings. I like the way this is trading, I think it works.