07Jan11:42 amEST

The Party, The Hangover, Then the Opportunity

UBER, LYFT, and BYND were three of the hotter IPOs from the spring of 2019. There was indeed much ballyhoo surrounding all three IPOs, as all three stocks enjoyed initial sharp rallies before running into some heavy and steady selling ever since, for the most part. 

It is understandable why the hoopla surrounding Uber, Lyft, and Beyond Meat was so pronounced, as all three companies represented the epitome of new age, millennial-era businesses with original services and products. Still, the longs who chased the three IPOs higher after a certain point were completely annihilated, especially with BYND correcting from nearly $240 per share in July down to a recent low in the mid-$70s. 

Such is the post-IPO life on Wall Street for trendy/fad stocks, however. And what we care about now is whether the nasty hangover has concluded so that we may swoop in for fresh opportunities. 

It seems that may very well be the case, as the broad market digests some recent wide price ranges this morning on the major averages. 

On the LYFT daily chart, updated below, note the strength this morning relative to the broad market as the chart attempts to put in a higher low relative to where it was in early-October 2019. BYND is also higher by 6.5% as I write this, trying to curl up and out of a base bottom, while UBER is clearing some recent resistance and sporting a potential triangle bottom pattern. 

All three names still have plenty of work ahead for longs to cement major turnarounds. But today is definitive progress for bulls after some subtle signs of stabilization in recent weeks. 

Dare I say, their hangovers have like run their course in the near-term. 

Here's the Thing... Two for Tuesday 01/07/20 {Vi...

 
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