Support and resistance levels are two of the most basic technical indicators we can look at when analyzing a chart setup.
Support levels can act like a sturdy ground floor that a stock can bounce off of, whereas resistance levels act like a ceiling that can prevent the stock from moving higher.
But how do we know when that ceiling is made of glass and a stock is set to shatter through it?
Intuition and “gut feelings” are never something that we can rely upon, which is why I like to look at activity in the dark pools.
Because while I may have a strong conviction about how things will go, I’m just one person— alternatively, orders placed in the dark pools represent large institutions, possibly event governments.
In other words, I like to follow the volume and ride the momentum.
Right now, I’m seeing a spree of dark pool prints come through on my scanner, indicating institutional buying interest in stocks pushing long-term resistance.
If the overall market moves higher from here, especially in spite of a stimulus, these stocks could be breakout candidates.
I want to share 3 of those stocks off my dark pools watchlist here today.
These trades have high potential due to a combination of high trading volume and good technicals.
Whether I actually decide to trade them, I won’t know until Monday.
If I do, my Dark Pools Profits subscribers will be the first to find out.
With the upcoming election only weeks away, the possibility of a stimulus deal around every corner has caused the markets to swirl.
And early market gains are wiped out in the blink of an eye…
Plus traders who chase stocks are getting shaken out of trades left and right.
And just the other day when the markets couldn’t find a direction, I managed to squeak out a cool 500% gain.*
Just check out some of my most recent trades*:
And that’s why I’ve focused on hunting momentum in the dark pools and have been landing lunker-size profits trade after trade.
Finding trades is hard to do and many times traders get stuck in “analysis paralysis” until they lose all their money on the account
But not everyone struggles with this
You see, huge institutions have research desks that focus on finding the best ideas for the traders
And that puts us at a huge disadvantage when it comes to doing our own research and trading with limited tools
But when I first started trading I had a limited understanding of what Dark Pools were even used for and knew I had to learn
Now how do I do this?
I started with these 4 questions that I had to answer first:
Now for me, I found that the more boxes that are checked off the list, the better signal there is for the dark pool scanner.
Recently, I used these four steps to land huge profits in NIO and now MSFT as it approaches earnings!
When it comes to the basics, two of my favorite indicators is momentum and volume that give me an edge
And my real edge comes down to combining these ideas and reading order flow and finding momentum in the dark pool markets
And this is the exact strategy that I want to share with you, a a strategy that you can follow just by learning from the pros
This strategy is jam-packed with daily research of stocks and monitoring the trading activity on every stock..
My goal is to get into trades following the dark pool traders and exit with a 100% profit in just a few days!
Now, I know you are wondering… Does this even work?
Well, I think it does!
Just check out some of these wins, a one of the highest-conviction trade idea service produced
Moving on to my most recent trade where I pulled in huge returns in just a few short days!
The dark pools may have given away the direction of one of my largest trades WEEKS BEFORE it actually hit
From the scanner, I noticed a few things that were happening that were out of the ordinary for this stock
Then I broke down and analyzed this trade using my 4 step process
So right away after looking over the 4 criteria for dark pool trades, I needed a piece of that action in NIO
Shortly after I bought these calls in NIO, the momentum started picking up as more and more institutions and traders entered the stock.
And this demand was causing the price to jump higher
Just take a look at what happened over the course of the next few days and caused my options that I alerted to members to skyrocket for a massive 500% gain
But since all trade information is public information, I’m just riding the coattails of the smart money who spend millions of dollars on research.
And if they put their money to work they must be doing it for good reason!
As you can see, this stock just soared after the dark pool trades were seen hitting the tapes.
I continue to monitor the Dark Pools for more and more of this trading activity every single day
So if you don’t want to miss the next trade like this that could land you a 500% profit …
Companies must go through a rigorous process when pricing and making available an initial public offering on a public exchange market. Once the company goes public, its stock is available to investors to purchase and stake a claim in that company via shares. Here we explore what an IPO is, the process involved with pricing and underwriting an initial public investment, and tips to keep in mind when investing in a corporation’s IPO.
Image via Unsplash by markusspiske
Initial public offering (IPO) pricing is the process in which underwriters analyze a number of key performance indicators of a private corporation to accurately price the corporation’s shares that will be offered to the public via a new stock issuance. A private corporation is a company that’s held under private ownership. Because of this, its shares are not available to the public on the stock market. Offering public shares allows the company to raise money from public investors to use towards the growth of the organization.
When a corporation goes from private to public, its private investors often realize the gains made from their investment in that company in full. This is because the transition from public to private often includes share premiums for its current investors. Many private investors of private companies are the organization’s early supporters such as family, friends, angel investors, and venture capitalists.
Companies that choose to go public do so because they have reached a maturity level that will pass the rigorous SEC regulations required to list its shares on a public exchange. This typically happens when a corporation reaches a private valuation of around $1 billion, or unicorn status. Some companies with very solid fundamentals and established profitability may qualify for an IPO before it reaches a private valuation of $1 billion. Whether a company qualifies for an IPO will depend largely on whether they meet the strict Securities and Exchange Commission (SEC) listing requirements and the current market competition.
Initial public offerings are significant moves for organizations and give them access to the ability to raise large amounts of capital from a public investor base. This, in turn, supports the company’s ability to expand and grow.
The initial public offering’s shares of an organization must be priced via underwriting due diligence. Due diligence refers to an audit performed by an underwriter or underwriters to verify the company’s financial records and other relevant information before it can be listed on a public exchange market. Records and information analyzed during the due diligence process include the organization’s market capitalization, margin trends, revenue, profit, valuation multiples (such as P/E ratios, PEGs, and P/S ratios), and balance sheets.
A successful initial public offering will depend on the demand for the organization’s shares. The more demand there is from the corporation, the higher their stock prices will be.
In addition to demand, other factors that contribute to how well an IPO will do include:
Most corporations will rely on an underwriter or team of underwriters to oversee the various parts of the IPO process.
The underwriters who participate in a company’s initial public offering are involved in performing due diligence, preparing all necessary documents, filing IPO documentation, marketing the IPO, and issuing the company’s shares to public shareholders.
Here are the steps involved in the underwriting process for an IPO:
The primary goal of an initial public offering is to sell a set number of shares at an ideal price. Corporations will typically only offer an initial public offering when they know the demand is high for their shares. While this demand may be good for the company, it’s not always good for investors, especially when the demand creates a hype that overrides the company’s fundamentals. This creates an advantageous situation for the corporation, but not for the investors who purchase its shares.
Other risks to keep in mind when investing in IPOs include:
If you’re interested in investing in IPOs, there are several things you can do to ensure your investments are as successful as possible. These include:
Understanding how the IPO process works is important if you plan to invest in initial public offerings. Take time to get as familiar as possible with the corporation before investing and choose a solid brokerage firm to work with to increase your success with IPOs.