BIG PICTURE:
As I have been saying over and over; the overall markets are still in healthy up trends. After trading in fairly tight ranges over the past few weeks or so; they now look set to break out to the up side on the back of very up beat earnings announcement from the large cap tech stocks like $AAPL, $FB and $AMZN. So therefore, I remain long biased on the overall markets and will continue to favor taking long trades over short trades for the time being.
MY BEST IDEA FOR TODAY:
While there are lots of gappers to choose from this morning, unfortunately most of them are outside of my price range and comfort zone. That being said, there is one idea I do like a lot and will look to trade today:
$PINS:
Catalyst: Announced earnings this morning and easily topped analyst expectations in addition to giving an upbeat forecast for the 3rd quarter.
Technicals: After carving out a massive 6 month bullish cup with handle formation; $PINS now look set to gap out of it and run big to the upside on the back of the aforementioned earnings news.
Fundamentals: Float - 399.5M; Short float - 7.00%; ATR - $1.16 and Avg. Vol - 13.93M
Bias & Plan: Given the technical picture and catalyst; I am anticipating that a lot of swing traders and longer term investors will be looking to accumulate this stock today. So therefore I am long biased on this stock. It has all time highs at $36.83 and fully expect this stock to test it today if not break through it. However, due to the size of the gap up; I will not be surprised to see some initial profit taking at the open before it settles down and starts trending higher later this morning/today.
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