Hi Marty. Thanks for this great service.
Quick question for you. For positioning in DLO, would it be OK near $62 with a stop below the gap candle low?
For GLBE (2 inside days in a row), positioning close to the 21EMA with a stop if it make a lower low?
IPOs are tough to position in.
Thanks in advance.
Thank you for the kind words and great question.
Yes, the IPO stocks are difficult to position for a few reasons. They do not have a long track record of trading. They are considered a risky asset and if the markets pull back they will correct more than the index. But, right now the IPO stocks are being bought. So we will take it one day at a time.
Let's start with GLBE as it is a bit easier for me as it has a longer trading history, and has a clearer pattern. The stock is clearly in an uptrend and making higher lows. It is trading tight now with volume drying up. I expect a bounce off the 21ema which was $68.21 today. If it trades below the $61.08 then I do not want any part of it as it is making new lows.DLO This one gapped higher on earnings and is not giving any back. It is acting like it wants higher prices. Let's see if it can consolidate for a few days above the $60 level. If it trades below $60 then I exit as it is likely to fill that earnings gap at $53.49 which is too much pain to endure. What we need to see here is allow the 10ema catch up to the price. Today the 10ema was $59.65. But, it is rising almost $2 per day. We need DLO to trade sideways for a few days and then bounce off its moving average.The 10ema will be in the mid $60s by next week.These are two strong IPOs and buying/selling them is difficult. I hope this answers your questions.