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