LYFT Sentiment=Finally Bad Enough for a Long Trade $57.50 Entry

 In Dynamic Brands

Wow investors are a tough bunch. Ride Sharing got its first IPO a few weeks ago and it’s been nothing but LYFT bashing ever since. I LOVE BEING A CONTRARIAN, if only for a trade.

I completely get the argument, the market is still forming, there’s UBER ready to have its IPO, LYFT burns cash like 3 Netflix’s and they may never generate free cash flow. I can’t dispute any of that, and it doesn’t matter for a trader.

Sentiment Matters A lot & LYFT negativity seems extreme=Opportunity

We look for “set-ups” that offer a higher probability of success whether long or short, we know what price gets us interested, what price we likely want to sell and what our stop is to protect against large drawdowns. If you’re going to be a trader, you have to get comfortable with losing money on a trade, it happens, get over it. The market doesn’t care what our cost basis is or why we need the money from a good trade, we are just a bull rider trying to ride the bull and stay on long enough to make the morning newspaper headlines!

LYFT: LONG at $57.50 was the trigger today.

1st Target: $64-$66 or 7-9% higher – Positive divergences have been developing as price goes lower.

Bigger Trade Target: $70 or 17% higher

TRIGGER: SHORT SQUEEZE

  • Short interest sky high offers squeeze potential

  • Underwriter’s have egg on their faces and likely will need to support the stock soon

  • Growth managers are licking their chops for this pullback so there’s buying interest at a price

  • Once we break >$60 TRADERS will get back in, they like chasing momentum

LYFT-ST.JPG

DISCLOSURES

THE INFORMATION PRESENTED ON THIS SITE IT IS NOT INTENDED TO BE TRADING OR INVESTING ADVICE. MY GOAL IS TO PROVIDE ANALYSIS TO ASSIST YOU IN MAKING YOUR OWN DECISIONS. THE ANALYSIS AND MARKET DATA THROUGHOUT THIS SITE IS PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. ALWAYS DO YOUR OWN DUE DILIGENCE AND RESEARCH BEFORE TRADING & INVESTING. THIS SITE HAS BEEN CREATED TO HIGHLIGHT INFORMATION REGARDING MANY OF THE WORLDS MOST RECOGNIZED & VALUABLE BRANDS. THIS INFORMATION IS FOR ILLUSTRATIVE PURPOSES ONLY.

Eric Clark, Portfolio Manager
Eric serves as a Portfolio Manager and a member of the Investment Committee at Accuvest Global Advisors. His focus is on Accuvest’s suite of Dynamic Brands equity strategies. As a member of the Investment Committee, his responsibilities include research, investment analysis, technical analysis, macroeconomic commentary, and portfolio strategy & implementation. Eric also leads the sales, marketing & distribution efforts of the Dynamic Brands business line. Eric has 25 years investment experience. Eric is a frequent writer about the power of the consumer spending theme and global consumption trends. He is a brand consultant and leads the Alpha Brands Consumer Spending Index committee. He holds the Series 7 and 66 licenses.
Recent Posts
Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Start typing and press Enter to search