IBD Live Q&A And Two Key Stock Lists For July 24, 2021

I watched Wednesday’s IBDLive last night. At around the 24 minute mark, Ali asked Chris to talk about position sizing and risk using a NVDA trade as an example. NVDA was 5.8% above its ten week line. Chris used an example of having a $100k portfolio, and applying 1% of the portfolio (i.e. $1k) to a trade on NVDA. If the trade went against you, you would sell at the ten week line. Chris took the $1k and divided it by 0.058 to get $17K, and the way I understood what Chris was saying was that you were risking 17% of your portfolio on the trade. How would one be risking $17K (17% of the portfolio) on this trade, when one is only buying $1k worth of stock. Instead of taking the $1k and dividing by 0.058, should the $1k be multiplied by 0.058 to get $58. Then would only be putting $58 at risk. Please clarify. Thanks. $1,000 is how much your risking to your portfolio. You take that and divide by 0.058, which gives you a position size of $17,241. That’s too big of a starting position for most people. So rather than risking $1,000, reduce that to $500 or 0.5% of a $100,000 portfolio. Then your positon would be $8,620, or an 8.6% position, which seems more reasonable in this market. Ticker of the day ROKU. Oh wait thats a real one lol ha ha Mark, I like that! Good morning. GM Taher Good morning! Hi Blaine! Let’s Rock It today! GM You know it, T! Cheers, and GM. Hatman Dave MS has issues you probably are aware of; but wanted to make sure you know, thanks Hi Jim! Yes, we are aware πŸ™ and working to fix. Thanks for everyone’s patience! Marketsmith does not work, here is my error message, when I open it:”There was a problem with your last request. Please try again.” We are definitely looking into this. Thank you for your patience and understanding. On MarketSmith pattern rec not displaying. Anyone else reporting this? We are definitely looking into this. Thanks much for your patience with this. gm from PA, quick question is there an issue with marketsmith I’m unable to load it on mobile or desktop Hi Joshua, we are see problems on our end and the MarketSmith team is working to fix them. Thanks much for your patience. Never mind – pattern rec back… ah, good to know! Good Morning, Hello, can’t hear this song? LOL! MS APP wasn’t working, but seems to be now. ? Hi Shari, GM! Yes, we apologize for the finicky issues w/ MarketSmith this morning, and are working on it. We play that song endlessly until Noriega in Panama gave up! 🀣🀣 Wow! GM Jose No music? Hi Aziz! Hope you caught at least part of that great Queen song… G morning, so nice to be in this meeting. It feels good. Very nice! Thanks for joining us, Jerry! Oh GREAT! Hi Kathy! So looking forward to learning from you this morning! What’s your IBD meetup name? I couldn’t find it. HI! Denver IBD Meetup How Options Trading Is Driving Up Stocks in the morning and Driving Them Down in the afternoon from Barron’s… IBD sister company Thanks for noting, Jimmy, and good morning! Hatman Dave Top of the Morning again from Westminster, CA! Right down the street. πŸ™‚ Hey there Ron! Good morning IBD Live Team! GM F.E.G. ! Welcome Kathy!! Love your book❀️ Thank you Good morning. two stocks for Kathy Donnelly, MRNA and PCOR. PCOR may be volatile day to day but ends last 5 weeks around $95. Your book has been really helpful understanding behavior of IPOs. Thanks a lot. Great to hear! Thanks! Good Morning IBD Live and a very Happy Friday! Happy Friday! Glad to have you back, Kathy! Thanks! What does the team think of POOL off of the 50 day line? Hi Walt; very interesting how POOL is testing both the 10-week MA and the recent flat base’s entry at 449.54. We like to emphasize in the Long-Term Leaders column that pullbacks off the 10-week MA do offer a good entry, often better than the initial breakout. POOL may be demonstrating this buying strategy, right? Cheers, Hatman Dave Good morning everyone. I am reading “The Lifecycle Trade” and really enjoying it! Kudos Kathy! Thank you! Good morning! Great to have Kathy in today’s show Thanks! What do you think of GLBE and DOCS? Two top performing IPOs on my watch list. Still basing. Looking sharp David Saito Hatman Chung! πŸ™‚ For real! Good morning all. Ali, enjoyed the interview with the DOCU ceo. When does investment strategies usually get put up. Hi Steven! Thank you for watching! We usually release a new episode the first Monday of each new month. The next episode will be out Monday after next! Dave, congrats on your call on SNAP. Your position is being rewarded… Thank you Rick! I am getting more convinced the stock may be a multi-year winner; hopefully more new buy opps for the Live audience. Godd morning guys !! Kathy would love to know your thoughts on SPAC . When is a good time to enter these stocks . Thanks ! My opinion is you can use the IPO Phases as a guide – keeping in mind, so much more volatile! Please take a look at SNAP, after it was removed fom LB today. Put it back on or extended? live answered Kathy – can you summarize how to win by investing in IPOs? Good to see you! Thank you! I think the best was is to wait for the PIO-Advance Phase Good morning from Florida Kathy!!! Hi Brian! GREAT book Kathy, loved it and working hard on my IPO education… Thank you so much! GM from Houston! Happy Hatman is going to look at CRWD…..I was going to ask about it… . GM Richard! Glad to hear this. Good morning! GM Brian! Good morning from Chicago and let’s all have an amazing Friday! GM Peter, Happy Friday good sir! Lucid vote has been approved and ratified. Thanks for this Scott China EVs are down – what was the news? Sorry missed Ed’s comment More regulatory concers in China, this time with the education stocks. Bringing everything China-related down. Dave – the tie really suits you! Very inspiring agree! and on a Friday!! Curious do you guys have a breakdown of IBD watchers by percentage that are position traders or swing traders or day traders. Might be a good poll question. Thanks. Love the show. Super suggestion, Steven! Hope Ali sees this one. Kathy would you have a look at UPST? IPO insiders still selling? My opinion is it is done for awhile… but you never know…. KD Read your book. Excellent. It Filled a gap that was needed. Thanks DK Thank you! Justin, Check out XPEL website if you get a chance this weekend. They are well diversified beyond automotive sector. They actually serve 4 market segments. Nice podcast yesterday, Thanks. An excellent point, Jim. GM Ms Donnelly always a pleasure to see your smile. Thank you Just ordered your book Kathy. Looking forward to learning more about IPOs! Thank you! I hope it helps! Kathy — what are your thoughts on UPWK? Good composite rating! Still in a base.. personally, would like to see it tighten up Any thoughts on BNTX? Impressive move for sure. We added it to Leaderboard last week. Too extended now. Hi Guys! Big Fan! Kathy how about FIGS? stilll in ipo-advance phase… not sure if done yet and will start i-ddp or still has room to go SNOW setting up ? I think it might be… tbd… we’ll talk about it It looks like $BNTX is going VERY vertical! Yes, we discussed increasing position on Leaderboard on Wed but felt like we would be chasing after five straight gains. thanks Kathy- my pleasure I really like ROKU’s action this morning . . . potentially, looking to add shares later this morning. Looking good as it breaks the handle downtrend. How is Kathy thinking about FIGS as it consolidates after its IPO? i’m wondering if it will start its i-ddp soon or could still have a little more for the ipo-ap… hard to say… but definitely getting a little more volatile imo As for IPO’s thoughts on INTA Picture perfect breakout from an IPO base but not profitable yet and revenue growth has slowed dramatically in recent quarters. Need to understand the story better. Great technical action though. What’s the panel’s advice around these Chinese stocks hurt today by the proposed listing regulations? I don’t fish much in the China pond, but I think I can honestly say I will never own a Chinese stock again. Just too much uncertainty. Kathy how does OLO look to you? Mahalo’s i think it’s interesting company. It doesn’t meet my $20M/day liquidity requirement though. looks like it is basing… may be starting i-ddp Hi, check Roku please. It may just break out. Agree it’s getting ready. Breakout over trend line today. Can you please advise Kathy’s website and name of the book? Thx πŸ™‚ Whats Kathys sell signal for snap? i use mental capital preservation of 50 which is retaining at least 50% of my gains and a break of the 40 week What is Kathy’s position size on her long term holds like SNAP? i do initial position sizes to 12% and will add to 16% plus and let it grow as price appreciates would love kathy’s opinion of ASAN looks good… extended… needs a new base for me to look for an entry… Let’s finish the week strong; welcome Kathy! yes! thanks1 Good morning team! Can you remind me of the title of Kathy’s book? The LIfecycle Trade Good Morning All! Kathy could you please speak about the new IPO Sentinelone (S) and as where do you see a good entry or if you are already in it, where to add? And when is the earliest time you buy in to an IPO? or do you always wait for a base? i am not in it. looks like it is building an ipo base… maybe builds a base with bp around $54… i always wait for an ipo base at a minimum personally would you hold FB through earnings? Depends on your cushion. If you’ve got a decent profit you can choose to hold through earnings. Kathy – thoughts on DIDI? The fundementals are so strong but the government is troublesome. looks like a pump and dump pattern to me… at this point… Is Kathy watching OLO? yes, but still illiquid for me Check ZI on daily… long base – getting close to breakout ? i’ve been watching for a long time… would like to see a tighter base and a better RS line Thnak you, Kathy. I have your book and I can’t wait to start it. Have Cherry Cricket Burger for me. I spent 6 good years in Denver. Lovely state and city! YUM! Thank you! would love to hear Kathys analysis of SKILZ, especially impact of short interest. Thx! looks like in a downtrend and in the i-ddp phase Another IPO to look at LZ nice ipo base, but illiquid imo .. i.e. less than $20M/day Also is STEP on Kathy radar ? looks like starting I-AP, however, not on my radar because trades less than $20M/day Wander what Kathy thinks of IPO AVTR? i had been watching this one a long time, but never purchased it… looks like doing well and still in the Institutional Advance Phase Tie Man, Thanks! I was just thinking of railroad tracks. love that. tie man! lol Huge shocking drops in these Chinese stocks. What’s going on? TAL | BZUN | PDD | VIPS | EDU China may make for-profit education firms be nonprofit. Sector crushed. Latest crackdown spurring selling in U.S.-listed stocks broadly. Any thoughts, Kathy, on ZIP? If looks interesting, what would be your entry? live answered Would be great to get Kathy’s take on SPT still looks good, however, having trouble breaking out from this last deeper base… may need to rest for a while Kathy, any thoughts on ELAN? could be finally reaching its turbulence zone from its ipo prior high at 37.81…. nice flat base… Do you get rid off the stock as soon as hits 7% or wait till end of the day before getting rid off the stock live answered Thank you for your quick response Kathy . How do you feel about TSP and CELH ? looks like ipo-ap is done which is so common on these recent ips… probably will start i-ddp. don’t know much about CELH.. struggling at this reent breakout.. might need to go sideways some more Hi Kathy why trading 20M a day is important? Thank you!! i always want to make sure i can get in and out of stock. and big money managers want to be able to do the same, so if there is not enough liquidity.. big money investors can’t “hide” what they are buying… Whai is Kathy’s opinion on OLO we have been discussing quite often? live answered Hi Kathy – I loved The Lifecycle Trade. I always recommend this book along with How To Make Money in Stocks Thank you so much! Any reason why LI is not cut from swingtrader yet? Dumping now. It was fighting back but fading. Kathy, how long do you hold your IPO positons generally? Could you also comment on ZIM, which has been strong, until recently with a pull back, but fundamentals look great. Any input on the stock? once i am in the i-ap phase… my goal is 1-1.5 year or more.. if the stock lets me. ZIM had a great ipo-ap. looks like it is finally builidng a base, so we’ll see if it comes all the way back down or base and hold gains for a while… How about the IPO MCW? interesting… we all know mister car wash… lol.. not liquid enough for me though based on the research VZIO – Always liked their products. Took a small pilot position and waiting. Thoughts on this one, Kathy? good luck! bordering on liquid to illiquid from my perspective… but i like that it is still base building vs going down … looks like a blue dot today too! Good morning Kathy, your book was a great read! All of these folks should buy it and read it twice! Is DOCS a good potential soon, after another base? ….. also, come up to Vail area and let’s hike! Thank you! Yes, Vail… sounds great! Nice ipo base… and liquid enough.. so far. πŸ˜‰ looks like great fundamentals Would you please ask Kathy about DASH? looks like it may be starting to build a potential first mature base… let’s see if it holds Whats Cathy think of the IPO – DCBO?? a little illiquid for me… technically, has a deep cwh… and holding bp… will have to contend with turbulence zone around 68… doesn’t ZIP have more than 20m liquidity? 1.3m shares times 24 i show recent volume less than 500k…. the first days can be skewed “Get out of your laggard losers if you’re down 8% below the price you paid so that you won’t risk getting badly hurt.” Wiiliam J O’niel HTMMS Pg. 192 Yes! Hi Kathy, nice to see you again. I bought your book. It is a great book! With my limited knowledge I picked INMD. Do you think INMD has some similarity to SNAP? Thanks! Thank you! INMD is an a great IAP phase and i believe it was a rare jewel as well.. currently, extended… SNAP was not a rare jewel fyi. I have to wonder if this week is going to end in railroad tracks and potential early sell signal… BNTX very active yesterday. Comment? It was breaking out of a consolidation and acting very well. SwingTrader added it on the reversal and is still holding it. Kathy …would appreciate your opinion on XM Qualtrics International. Thank you Hi. I’ve been watching it. still in i-ddp… looking for mature base Can Kathy give us some examples of rare jewels? live answered Kathy, your thoughts on DASH please. looks like it may be building a first mature base and still in i-ddp … no 40 week line yet, but i’m sure it’s close… definitely on my radar… nice sales numbers IPO VERV did double within 90 days. While thin..thoughts? wow – yes… my only other concern would be biotechs are volatile and no fundamentals… i normally shy away from biotechs for that reason Thank you Kathy for your responses. my pleasure GM, regarding liquidity in ZIP it appears to be over 30m. Or do I have it wrong? Thanks i like to look at the most recent daily trading volume, because can easily be skewed by the first few days… that’s why from my perspective it’s not liquid enough yet how many weeks again does it take to form a proper dbl bottom base? 7 weeks is the minimum, but they often take longer. for IPO’s, thoughts on CRCT? from my perspective ipo ap is starting to waver here… may start to roll over and or start new consolidation… tbd… Are Liquidity requirements important to both small and large investors? i think so. πŸ™‚ Hi Kathy- Any thoughts on NAPA i definitely like wine. πŸ™‚ a little illiquid for me… technically had a first base with a short run up… probably needs more consolidation and an i-ddp Kathy, any new buys this week? i did not make any new stock buys this week. i did mention, i added a nibble to snow this week Good morning πŸ™‚ Does MarketSmith have a screen showing stocks that broke the downtrend? Thanks! No screen. You need to draw and activate it. I’ve always got a number of downtrend lines in my alerts. Kathy, what do you think about AMEH? looks extended and needs a new base before a new buying opportunity .. imo did we talk about snow Not yet! πŸ™‚ What are Kathy’s thoughts on TENB? looks like having trouble and although broke past it’s turbulence zone from ipo high at $40… and back to that area what is Kathy’s position % size when she buys an IPO stock? in the ipo -ap i do a 6% position – half a normal position size because of the volatiliy I like Kathy’s approach to the market. Can Kathy give the top three stocks she is watching now? Thanks! SNOW U DASH πŸ™‚ AMWL — Nice example of a PUMP and DUMP. Yep. Breakout occurred right as TDOC made its last run. Which MA did Karthy mention that she uses? 40 week! COIN- Pump & dump? so far πŸ™‚ TWLO- Was May 2018 “Flat Base” into 50 MA the Buy for Kathy? i bought the base breakout in feb 2018 area…. FRHC? Hi Pedro, I think it’s acting well since the double-bottom breakout! FRHC almost reached a 20% gain from the 58.20 entry. Nice to see it recouping much of the prior two weeks’ declines. NVDA pulled back to 21 day, 7.9% above 50 day, thoughts on adding here? Hi David, I like to use the 10-week MA for follow-on buys, and currently it’s just under 6% above the current level of the 10-week line. To me it’s got a good risk-reward profile. We both know it’s the leader in fabless semi, a tech leader. I’ve been adding back to the core position. Cheers, Dave SNOW potential late bloomer yes What is nibble in stock trading? live answered What % position is a nibble here on SNOW? How does Kathy build this position out? live answered Ali asks the best questions. Thank you! No doubt! For pilot positions, what % loss are you willing to accept? live answered what is Kathy’s liquidity requirement? At least $20 million in daily dollar vol, ideally over $100 million What are the circled + and – on the chart? Those are insider buys and sells. We really only pay to attention to the buys. Big winners will always show insider sells all the way up. Can someone tell me where I can find information on next week’s IPO webinar (mentioned on yesterday’s show). I can’t find it. Thank you!! Here you go: Any concern about qqq getting extended Yes. It’s 6% above the 50-day. If it pushes near 7%, my hedging trigger finger will be even itchier. CRWD looks like a high handle live answered any thought on PINS? live answered Quickly taking gains Makes sense, selling into strength and scalping some profits, Phil; I’m also curious to see how earnings among the tech firms next week will help fuel the rebound further. NVDA is really going down today – is it time to sell? It’s only down 1.3% on light volume and getting support at the 10-day. Compared to the reversal and following days, this action is restrained. Looking fine for now. PLTR has not cut its first day low. Can Kathy talk about it ? She said roughly 90% will do that what do you guys mean by frothy? 239 IPOs priced already this year, up nearly 200% from last year. Some would say it points toward excessive euphoria which can come ahead of market pullbacks. i go to webinars and do not see how to sign up try this link: Does Kathy have a weekly newsletter giving the secrets about her outlook on IPOs? Not sure but more info at Could Kathy analyze ZIP? Is it time to buy? Looked at that one earlier! πŸ™‚ Not liquid enough for her but for those interested could look at IPO base buy point. We’re making sure we have small position sizes with IPO stocks since they’re so volatile! Dave, ROKU is 17% above 10 wk line, on the other hand, it’s a good early entry based on chart? what to do?? In general, what does one do when a name is at a legit PP but extened over 10% from 10 wk line? The breakout over trend line today takes precedent. New buy point of 463.09 in play. Got Marketsmith 4 days ago i’m super hooked lol great to hear Michael. Excellent support staff too. what is a “buy stop” order? Kathy mentioned this. A type of order you can enter with your online broker that says where to buy the stock. For example, with ROKU trading around 454 and just below buy 463.09 entry, one could enter a buy stop order at 463.25. The trade would trigger when it hits that price. ZM – my worst IPO play.. bought 74.17 IPO base when IBD mentioned it at the time, made nice gain but didn’t take 93.30 CwH due to market. (slapping my forehead) At least you made a gain, Doug, I missed almost all of that move from 93, 94, too! I sold too early. Should have done more due diligence. It would have really paid off. Cheers, Hatman Dave Thanks Ken – I guess you’ll cover that frothiness next week in the webinar? We’ll touch on it for sure. Thoughts on NVDA Nice rebound off the 10-week MA, in buy zone, Daniel. and Thanks Ken, does YETI looklike a BO from a consolidation on a weekly chart? I suppose but a classic example of what a wide and loose consolidation looks like. Prefer much tighter trading. with the new zoom update, the poll results button sits right over the Company name and Ticker symbol on the top right of the screen. Its terrible Thank you for letting me know! When does a nibble = a bite? live answered Thank you David Any time BNTX and MRNA update please before ending today, thanks Hi Francisco, we are looking at the weekly chart action, and both look great. But we also have to be mindful of a sell rule such as big negative reversal in heavy volume, given that both stocks have risen more than 100% above their 200-day MAs. Hatman Dave — This show went way too fast!!! Thank you Kathy!!! Totally felt that today, David! BIGC did go up 100% from closing day but it all happened in 3 days. How does that play into the classification? Larry, great Q; I think it shows the initial move can be so swift, and taking profits quickly does make sense back in Aug. Seen many hot new IPOs behave that way: PLTR, UPST, et al. Ed…..Here we again with TSLA……..then short it Ed You misunderstood what I was saying. Man, you guys are just great! Epic week. Thank you and a big thank you to Kathy! Yay!

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