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Warrior Trading Blog

Live Trading UBER +$870

Ross_Uber_IPO

What’s up everyone? All right, so Uber just IPO’d right around $45 a share, a little dip down. I bought the dip, sold on the move back up, a quick $870 of profit. Day trading the IPO. Check it out.

All right so, it looks like we just had our IPO year of Uber, which we were kind of watching for. IPO’s are always a little different to trade, they move extremely quickly. The opening high… Let me go down to a 10 second chart, we can already see 71 million shares of volume. So I look for obvious places to be a buyer. So right now over 43 would be potential scalp trade for a move back higher, so I would go down on share size because the volatility is very high. But you can see how we’ve got this little consolidation here. So right now the pivoted fact is 42.78. So over 42.78 is a spot to be a buyer, so I’ll put an order at 4285. So it’s ready to go, watching.

You can see a seller up there at… So I’ll take a starter there for a quick scalp. What I’m looking for, is a break over this high right here, 42.75, break over 44, 43. Going for the break of $43. Ultimately, that’s what would really look best on this. You can see it’s up to the high there, so 43 is the spot that I want to see break. We often see resistance around half dollars and whole dollars, so this one’s showing us just a little bit of resistance up here around 43. I want to see if it’s going to give a quick break through that level. Here’s some buyers. I’m selling half just to be safe, because you see that big resistance level, they’re selling another quarter and selling the rest as we break through the highs.

So that for me is a nice quick $900 of profit, and it looks like it could’ve held a little longer. But what I was a little concerned about was a possible false break at 43, which is when we break that whole dollar, and then drop back down below it. So the current high now there of that move was 43.50. IPOs are not something that I really ever go for, as I’m going to buy this and hold this for the next two weeks. Typically stocks at IPO sell off, and then they have a recent IPO breakout where they move higher. But on the actual date of the IPO, this is kind of the best case scenario. This is one of the better wins I’ve had on an IPO in recent trading for me.

The left IPO wasn’t easy, this one now back over 43.50 could be worth watching. Uber has certainly hyped up. A lot of people have been excited about and thinking about it, but now at this point, you’ve got 75 million shares of volume. Putting another order to get back in at 43.50 feels like it would be a pretty high entry, and I’m not sure if this is actually going to be able to break back over the higher day. This candle here is a five minute candle that is about to close, and it looks as though it’s going to close as a shooting star. Tall, long upper wick, with a small body, that’s an indicator of a stock that’s going to go down.

So if you can scalp a little bit on the one minute as we did here, I think that’s great, I left a little money on the table. But remember every single day, you’re either leaving money on the table, or you’re getting back profit. You’re always doing one or the other. But if you’re walking away green, as I will today with $900, you’re doing something that nine out of ten traders haven’t figured out how to do consistently. So give yourself a pat on the back for consistent profit.

So let’s say I got back in this right here, if I jumped back in this right here for the break over the half dollar, now I’m up about 20 cents on the ask, nine cents on the bid. Let’s refresh this chart. You can see my charts have stopped loading. Got to switch to a different stock, Uber. Okay, so there’s actually the five minute set up. So another problem with recent IPOs is that five minute setups often get broken. If I had realized that, that was the first five minute candle to make a new high, I actually would have probably held a little bit longer because that is a slightly stronger setup. But that’s okay.

So that could have been a full dollar per share if I’d held, but we popped up to 50, we dropped back down 50 cents. So a 50 cent range there just in this area here, then back up to 75. So now you can see a little bit of resistance here from this area to this area, so if it’s still able to hold this level or break over 75, it could give us a break over $44, and then maybe we start moving up towards 44.50, 45. But I think the risk on that side will be pretty high as well. 79 million shares of volume.

Selling half up at the half dollar, I also thing was the right decision, because of the fact that on it’s first tap, came up to 43 and then dropped back down to 81. So it came down 25 cents basically right back to my entry price, or close to, and we often see false breakouts at half dollars, where it either breaks by five cents and then flushes down, or it can’t break it because you’ve got that big seller. So when I see that break, I often like to scalp through and sell the ask. And this one just ended up going up a little higher than I thought. But overall, nice little move there.

Remember IPOs rarely are shortable, so most people aren’t able to short this even if they wanted to. You still have that kind of wick here, this upper wick, this lower wick. A little choppy. So that will probably be it. Coming back down to the VWAP what we’re probably going to see is a bit of a decrease in volume coming down. We have a nice volume spike here, which we traded. This volume spike as it broke over the half dollar I didn’t trade, but only gained about 25 cents on the initial break out. And this is a ten second chart, so we pulled this back to a one minute chart. Choppy.

So, I’ll take my $900 from Uber… $870 from Uber, not bad. I live to trade another day. Be back at it on Monday.

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