The other day I dimed out a trade idea in Pinterest (PINS).

Here’s what I mentioned…

 

 

PINS continues to look like a strong one having trended up for the past several months bouncing off the 50 sma on the day again just yesterday. I would like to see PINs break $22.50 with a target of $24.50. 

On Thursday, PINS actually hit my target fairly quickly…

The reason for the pop?

Facebook (FB) shut down its rival app.

Although I didn’t trade PINS, I want to show you the process I used to uncover this quick winner… and why I believe it’s so important to follow dark pool activity.

 

Dark Pool Activity Signaled Pop In PINS

 

Now, if you refer to the dark pool activity…

Here’s how I look at it.

 

 

PINS dark pool order went off at $22.04, they purchased 1.312M shares at 16:02:08 (4:02:08 PM ET). The total order size was $28.93M.

To me, if someone is placing an order in the after-hours…

That’s worth $28.93M, it probably means it’s a financial institution, hedge fund, or just someone with a large financial backing.

If you know anything about these players, they have an unfair advantage, in my opinion…

You see, they have so much money, they can spend a lot of money on research and technology.

It’s not a level playing field…

And that’s why I use a dark pool scanner.

Why?

Chances are, whoever is placing a bet in the dark pools would be considered “smart money” and elite traders.

That means I can see where they’re placing their bets.

However, that doesn’t mean I’m following them blindly… I actually conduct my research.

With PINS, there was actually news in the social media space.

Facebook received a lot of backlash from its control of hate speech on its platforms… and some advertisers pulled their spend.

Consequently, I figured these companies may look to other advertisers may look to other social media companies to advertise.

Well, although the catalyst I thought of wasn’t right…

There was some news…

 

 

Facebook announced it confirmed its plans to shut down Hobbi, PINS competitor.

That means more market share for the stock… and potentially more revenue.

Consequently, the stock exploded on Wednesday and continued its run on Thursday…

 

Source: StockCharts

 

The stock hit the target of $24.50… and for those who took the trade idea, I’m so stoked… even though I didn’t take it.

PINS could continue to run from here if FB continues to lose companies advertising on its platforms.

Now, if you want to receive my watchlist and alerts to learn how I use dark pool activity to my advantage… then click here and join now.

Author: Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com weekly podcast WealthWise where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share the wisdom needed to live a wealthy life.

It’s a dog eat dog world out there.

So many large companies are competing for an edge in the marketplace in these rapidly-evolving times. 

In order to keep up, businesses need data and analytics which can help them make better decisions and get the results they’re looking for. 

With the world becoming increasingly digital, data is everywhere. 

For large firms, the data can include information about customers, vendors, and partners. 

By gathering data from the past— and also spur of the moment— companies can better anticipate the future. 

They can flourish, expand, and reach their goals faster. 

 

 

 

 

 

 

 

 

It sounds obvious, but there’s a problem…

With so much data out there, it can be hard to separate the wheat from the chaff. 

Knowing what data to trust can be an issue— let alone knowing how to make that data practical and actionable. 

That’s where yesterday’s IPO comes in.

The company is Dun & Bradstreet (DNB) and it provides data, analytics, and insights for businesses. 

I just issued a tentative green light for DNB, which means I may jump into the stock any day now. 

So I want to share why I’m potentially optimistic about the stock, despite one issue that I’m seeing. 

 

Dun & Bradstreet Helps Companies Assess Potential Partnerships That Could Make or Break Them

 

Dun & Bradstreet (DNB), founded in 1841, has a robust client base of over 135,000 businesses, 90% of which are Fortune 500 companies. 

The reason for its large number of high profile clientele is obvious.

Dun & Bradstreet provides important solutions including profitable growth, risk management, and business integration.

The company uses its Data Cloud to help companies make the most of their working capital, increase sales, and emphasize their most valuable business relationships. 

That includes which customers are best to prioritize in terms of their up-selling and cross-selling efforts. 

Dun & Bradstreet’s data analytics also help these companies identify who to partner with based on factors such as creditworthiness and propensity to buy. 

In terms of risk management, Dun & Bradstreet helps companies determine which potential partners could expose them to the most risk. 

This is especially important for companies looking to partner with businesses that are located in other parts of the world — and that would otherwise be more difficult to access information on. 

 

 

 

 

 

 

Dun & Bradstreet relies upon a D-U-N-S (data universal numbering system), which identifies businesses and provides timely and up-to-date information on over 330 million of them worldwide. 

The best part of Dun & Bradstreet’s services is their business integration. 

Using a single platform, they’re able to connect the dots between otherwise disparate business data and systems. 

 

Dun & Bradstreet Is Jumping Into the Market AGAIN— I Might Join Them

 

After an initial debut on the public market, Dun & Bradstreet (DNB) returned to private hands in 2018. 

But yesterday’s IPO marks the second time that Dun & Bradstreet went public, now with a slimmer staff. 

 

 

 

 

 

 

Whereas the company had as many as 5,500 employees around the globe, that number is just over 4,000 people at the moment, due in large part to CONVID-19.

DNB is hoping to ride the wave of successful IPOs that have recently priced during this CONVID-19 recession. 

And so far, it looks like DNB made the right decision. 

The company raised 31% more than expected in its IPO yesterday and now sits at a total market value of $9.1 billion.

The company is private equity backed and the three main investors made an agreement to buy $400 million worth of common stock on the debut.

DNB brought in $1.7 billion in proceeds by offering 78.3 million shares at $22, which was above the range of $19 to $21 and up from the 65.8 million shares they initially planned to offer. 

Here’s the one thing I’m wary about, however. 

The company is highly leveraged and they have a whopping $4 billion in long term-debt as of March 31.

They hope to use the proceeds from the IPO to pay down this massive debt, which to me is not usually a good sign. 

The big question is whether the market will be able to digest the debt load of this company, especially given Albertson’s private equity offering last week that has so far been considered a failure.

Nevertheless, revenues look strong and the demand is certainly there for the IPO. 

Goldman is also leading the way on this one, which really helps.

So I’m giving it a conditional green light, and I may enter if it can continue strong over the coming week and keeps making new highs.

My premium IPO Payday subscribers will be the first to find out if I jump in. 

If you’re not already an IPO Payday member and would like to receive my critical IPO watchlist and trade alerts, you can join here. 

Author: Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com weekly podcast WealthWise where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share the wisdom needed to live a wealthy life.

The strategy deployed at Daily Deposits was purposely created to handle a single task.

Identify momentum in the SPYs by leveraging a proprietary blend of momentum and trend indicators to target and execute on throughout the trading day.

But why focus only on trend and momentum trades?

Well…because a great strategy to take advantage of market trends is hard to beat!  

And strategies that follow the trend are easy to follow, simple to trade, and can generate mind-blowing returns without breaking a sweat.

Daily Deposits come with 3 key indicators to determine what the market could do once the stock exchange opens 

The 3 key momentum indicators are:

  1. Price action and volume
  2. Moving averages confirm trend
  3. TTM Squeeze

Let’s take a look at how to correctly use these three pre-market momentum indicators to determine the direction of the markets before each trading day.

 

Pre Market Analysis

 

Let’s break down how I use the pre-market analysis every morning to make my trading decisions.  

I monitor everything coming across the markets so you don’t have to. 

I take in the good news and the bad, and make sense of what I am seeing from my years of experience.  

I do this to make sure that I don’t go into the trading day and miss news. 

So, where do I start? 

I review the global markets from the top to bottom!  

I start with what’s happening in the Asian markets, European markets, and then the U.S. pre-markets on the e-mini futures.

 

Fundamentals Help Determine The Direction

 

At first, it might seem odd that a day trader would care about the macro market signals of the markets.

But most of the time, fundamental factors can drive the largest move in the markets.

Let’s take a look at what I use to get ahead of the markets every day.

2 Key Fundamentals To Watch:

  1. Macro Indicators 
    • Currencies – Equities have an inverse relationship to the Japanese Yen
    • Bonds – Equities have an inverse relationship to bonds
  2. Market Sentiment 
    • US futures markets
    • Overseas futures markets
    • Commodities – Oil, gold, copper, etc

 

Technical Analysis

 

On top of all of the fundamentals, monitoring the markets using technical analysis is a must for making huge returns while trading.

This is where the real trade information comes from.

And with technical analysis, you get your buy levels, sell levels, stops, targets, and position sizing information.  

Here are some of the momentum tools that I use on a daily basis:

  • 10 and 20 SMA
  • TTM Squeeze
  • 5 min, 10m, 15m charts
  • Range Breakouts

 

An Example Trade

 

Momentum is all about catching the right stock, at the right time and in the correct direction.

But if you fail to identify any one of those three components, you are left stuck holding a losing trade.

Let’s take a look at how each of these work to determine exactly what direction you should trade the markets in.  

How it works:

  • Understand the major trend based on the highest timeframe first
  • Analyse the higher and lower time frames 
  • Confirm momentum using moving averages, TTM and volume analysis

Here is a chart of the SPYs:

 

Source: Thinkorswim

 

The breakdown of the SPY chart:

  • The short term trend is positive
  • The long term trend is neutral / negative
  • TTM momentum is climbing 
  • RSI is climbing from lows

 

30-Min Range Breakout

 

Now that you have the major trend identified and the other sources of momentum outlined, the next step is to confirm this trend and enter the trade.

And that’s where the technical indicator that looks at a range breakout is incorporated into the pre-market momentum strategy.

 

Directional Bias

 

From the pre-market analysis that was done earlier, the trade is inherently biased to the short side. 

There are many criteria that go into creating directional biases, but for the Daily Deposits, we will be focusing on the technical indicators to give us what we are looking for.  

Here’s an example of the trade on the SPY:

 

Source: Thinkorswim

 

And as we can tell, once that 30-minute range is officially broken the markets picked up upward momentum and closed near the highs!

Here’s a checklist for trading an opening range breakout combined with market momentum

  • Have a bias:  Long/short/none.  Don’t take a direction if you don’t have a supporting bias from the overnight session.
  • Establish your entry levels:  Based on daily, 15 min, and 5 min chart price action and pre-market momentum.  Use these for supporting signals ;
  • Trade in direction of the breakout and your biased direction

 

Wrapping up

 

This is one of the most reliable systems for a trader to trade the markets based on premarket futures and momentum indicators.

This is so effective it completely reduces the need for any complicated day trading strategies!

So if you’re looking for a simple and consistent way to crush the markets

Click here to join Daily Deposits now

Author: Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com weekly podcast WealthWise where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share the wisdom needed to live a wealthy life.

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