Selling with an Eye Towards a Buy

I sold down the rest of a SNAP long first thing this morning inside Market Chess Subscription Services, mostly looking to take advantage of the stock receiving another upgrade in the face of a weak tape. 

Still, part of me wanted to hold SNAP for an even bigger win, as it human nature. That said, the weekly chart, below, illustrates just how significant of a prior price level SNAP is circling back up to, even if the shorter-term daily timeframe does indeed look much-improved from a technical perspective. 

As you can see, the $12/$13 area was critical support for SNAP longs ever since its March 2017 IPO. However, when the stock broke down in the back half of 2018, all of those longs became trapped and most likely capitulated. But for those that did not, a trip back up to the scene of broken support offers a likely spot for them to save face and take some money off the table here, which is why I expect a near-term pause in the stock, at least (this is known as "overhead supply" in technical analysis). 

After an initial, expected pause, though, I will be right back in there looking for a fresh SNAP long entry, as I think the likes of SNAP TWTR and a few other long-time laggards are quietly improving and have yet to show signs of giving up the ghost. 

Elsewhere, crude oil and gold strength have been looking at those sectors more closely for longs in lieu of tech drifting lower today.