A Real Setup for Fake News

Last Sunday evening, "60 Minutes" on CBS did a segment about the phrase du jour, "Fake News."

Putting to one side the merits of that topic, it was interesting to see the CEO of The Trade Desk, Inc. make an appearance. Indeed, Jeff Green, the CEO of TTD, may have been the big winner of that segment, as CBS noted that TTD helps companies avoid fraudulent sites, and also made point to emphasize that anyone is susceptible to "fake news."

TTD is a chart we looked at previously, as the 2016 IPO had time to form its post-IPO base for many months. 

Last month, TTD broke higher from its long IPO base over the $30 level. Since then, the stock became stretched and eventually pulled back, likely shaking out some chasers and keeping longs honest. 

However, the weekly chart, below, indicates that the breakout from February remains intact, with price holding well above $30 for the duration of the pullback. Should that remain the case, I see a long setup emerging which is a much lower risk spot than chasing it several weeks ago would have been. 

Also note that TTD is notably outperforming the market today, another promising sign that the pullback has perhaps run its course. To be sure, there are visible leaders like AMZN thriving today. But a more subtle name like TTD is worthy of attention, too.

More ideas like this in my usual Midday Video for Members.