SNAP Trade on Jan 9, 2020 09:39 from MarcoG: Tradervue User Stock Trades.

Pull-back play above pm high on Upgrade!!

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Overall Picture

SPY is just in turbo mode!! Wow what performance, just got back all what lost in yesterday's pm session and close the trading day marking new all time high. I think any sort of bear consideration here it's just pure gamble. The worries brought by the Iran conflict eased as expected. Market does not really care about it. It might sound weird what I am saying but as per today there has been no real consequences brought by the Iran situation thus I deduce that investors still don't give a f...!!

Today's Watchlist

Today I had on the wachtlist: KSS, BBBY,LK and SNAP

KSS: Kohl's Corp. shares sank 6.4% in Thursday premarket trading after the retailer reported a 0.2% decline in holiday season comparable sales. "We continue to see momentum in key areas including our digital business, active, beauty and children's, and solid performance in footwear and men's," said Chief Executive Michelle Gass in a statement. "This was offset by softness in women's, which we are working with speed to address." Fiscal 2019 earnings are now expected to be on the low end of the guidance range for $4.75 to $4.95. The FactSet consensus is for EPS of $4.88. Kohl's was downgraded twice in recent days based on weakness in the women's business. Kohl's is scheduled to announce fourth-quarter earnings Feb. 25. Kohl's shares have fallen 29.4% over the past year while the S&P 500 index has gained nearly 26%.
I had KSS with a short bias in case the stock would have kept the downtrend lasting now already since more then a year. The bleeding in pm gave me confidence to believe in a possible continuation. It didn't occur though the stock provided a beautiful sell off at the open when price bounced testing 46.50sh. This is something I wanna get to, by the time!! Shorting the opening bounce of a heavy pm sold stock.

BBBY: Bed Bath & Beyond Inc. (BBBY) - Get Report shares posted their biggest one-day decline in more than a year on Thursday after the home-focused retailed posted a surprise third quarter loss under new CEO Mark Tritton and scrapped its full-year profit guidance.
Bed Bath & Beyond recorded a loss of 31 cents per share for the three months ending on November 30, the group's fiscal third quarter, well shy of the Street consensus forecast of a 3 cents per share profit. Group revenues, the company said, fell 9% to $2.8 billion, just shy of analysts' forecast of a $2.86 billion tally.
BBBY was such as KSS my second short biased stock for today. I am happy that my idea occurred and the stock faded after few minutes by the open. When the price got to retest pm level of support at 14.50sh I was already trading SNAP, though I have to say that the pullback would have betrayed me missing my entry for few cents. It went to pull 9 cents below 14.41 pm level of support and I would have not placed an order at that price. My rice would have been 5 cents or so below pm level of support thus 14.35.

LK: LK was on watch merely for the overall performance and technical. Is getting a new born beta stocks in my opinion that worth to be followed!! LK has been a missed trade! At 09:32 the stock got perfectly to pull at pm high to set my setup down by 09:33. In that moment considering that still none of the stocks in my watchlist supported by a catalyst had really got a trend I have decided to wait and give me the opportunity to trade those names in my list supported by news. I think that the overall attitude I have got here perhaps it's wrong. LK was selected to be traded with the same setup I had to trade the other stocks, thus first pullback at pm high/low and had to be executed for what it was! More self confidence here will support my practice, by the time I am acquiring it!!

Play

SNAP

Company Description

Sector: Communication Services
Industry: Internet Content & Information

Snap Inc. operates as a camera company in the United States and internationally. The company offers Snapchat, a camera application that helps people to communicate through short videos and images.

Trade Scenario

Snap Inc (NYSE:SNAP) stock is trading up 4.4% this afternoon at $17.40, after Jefferies upgraded the Snapchat parent to "buy" from "hold," and lifted its price target to $21 from $17 -- a nearly 26% premium to last night's close. The brokerage firm expressed optimism over user growth and advertising revenue, saying it expects the latter to double over the next three years. Additionally, Jefferies said it expects Snap to be "non-GAAP profitable by FY20." Cowen and Company also expressed optimism toward Snap, raising its rating to "outperform" from "market perform," and boosting its target price by $4 to $20. Overall, most analysts remain on the sidelines when it comes to SNAP. Prior to today, 15 of 27 brokerages called the stock a tepid "hold," while its average 12-month price target of $18.30 is a slim 4.8% premium to current levels.

Technical Levels

Support:

S1 17.23
S2 17.07
S3 17.03

S4 16.67

Resistance:

R1 17.44
R2 17.93
R3 18.17
R4 _18.36(52 Weeks High)

Inflection: 17.44

Trade Plan

SNAP was in my opinion the best looking stock in my watchlist. I was right considering the pm action as a confirmation of a possible continuation. Too many times disappointing action comes from a disappointing pm action! I would have bought the first pullback to pm high.

Set-up: Up-Trend Continuation entering at pull back to inflection.
Side: Long
Size: 600
Entry: 17.445 ( I would have added if 2 takes would be already granted but it occurred to fill only my first take thus I didn't add at the first pullback after my entry.

Takes: 17.68 / 17.83
Exit: 17.30

Trade Overview:

Analysis:

SNAP after losing ground under her feet got to bounce marking a perfect bullish formation. I have been happy to see such bounce cause I have immediately got positive on a possible setup confirmation. It occurred even if the stock got to retest my entry thus pm high more then 5 times in 18 minutes action. I have been holding soooo tight here, the will to get out was extremely HUGE!!!! But louder was the echo coming by a possible feeling of frustration caused by have closed a trade that still was valid! I just didn't do a thing! Waited and spectated to the show! This would have costed me the price of the ticket but in the end I think it worth the price to keep holding!

Tape reading:

No use of the tape to take any choice on the trade. I have spotted the accumulation on the ask that in the end confirmed the bounded range the stock got stuck for 1 hour and 45 minutes or so. The point of control at 14.70 has been controlling the 1.4B float stock at least long enough to betray me.

Orders:

I have thought the stock would never have broken the .70 for that reason I have locked in almost my entire position at take 1 to still grant me a modest trade.

Intuit:

I have liked the insight on LK. I have got a good eye! Nothing particular in relation to SNAP

Internalization:

I have crossed checked order type and share size, got on visualize my stopping price I have entered with the excitement that my setup was there! I was just happy to trade it, I have told myself: Nice I have an opportunity for me :D:D:D !!!

Comments:

The action related to an huge float stock today tested my knowledge. I had to expect SNAP, chopping around prior making the move but I didn't think about that. I didn't consider that it might take a while to move a 1.4 B float stock!! Got the lesson I won't be that conservatine next time! I will keep my conservative approach only for those stocks presenting huge volatility expressing erratic moves, for those whom the action still will be bounded in a range and slow pace I will provide longer time and wider range indeed!

What I did not like about the trade:
I didn't like my lack of knowledge providing all what commented just here above

What I have liked:
I have liked that I have given myself today an opportunity to be successful trading an A+ quality stock on an A+ setup!!

Additional Comments if any: I have located 900 shares to short that costed me 50$ or so! My goal is to make enough profit to go back to my first and only love broker Lightspeed!!