First thing these companies have in common is that they do not produce any real products, it’s all about advertising and big data.
Secondly, they show the same pattern of price after IPO (initial public offering). The pattern that I’m referring to is the following: Facebook drops after the IPO, forms a cup/bowl pattern, going up again and then breaks to the downside (red ellipse). Same for Twitter and Alibaba. Tesla showed a similar pattern after IPO, but less downside the first weeks…maybe because Tesla actually produces and sells a product? 😉
If Facebook, Twitter and Alibaba are any guide for the expected pattern of price of the company that we know as Snapchat, then we should sell now, wait for a price of $21 to $23 to buy (green ellipse), be patient for a couple of weeks and sell when the blue parabolic line breaks to the downside.
Check out the latest update of the S&P500 vs VIX here
Subscribe and stay informed!
Follow me on SOCIAL MEDIA
Follow me on social media to stay informed!
Workshops – Living in The Netherlands and want to attend a workshop?
I’m organizing several workshops on how to get started with trading the markets, how to protect yourself against rising interest rates and to learn from the mistakes I’ve made over the years. This workshop is in Dutch, and in Enschede, so if you want to attend one of these events, then please take a look here and sign up! If you already have a group that wants to hear my story, then I’m also willing to travel and bring a visit to your location (simply send an email to TripsTrading@gmail.com).