How To Catch A Hot IPO Pullback Before It Moves Out

VRM was a hot IPO on June 9, running up 50% from its opening print before dropping to test its opening range.

It tailed off, reversing from a “Pinocchio” of its initial high on July 6, signaling another trip down to test lows again.

On July 13, VRM traced out an LROD or Lightning Rod, a large range outside down day.

This is a bearish signal, BUT there was no downside follow through.

Follow through is key.

Setups are just setups. Signals are just signals without FOLLOW THROUGH.

The lack of follow through from the July 13 LROD put VRM on my long radar.

VRM triggered my “Cheetah” (cheater) entry on 7/29 when it cleared and sustained above the July 13 high (A).

Hit & Run members took it long on July 30 at 55.75 on an audible on the Hit & Run private Twitter feed.

We sold half for a 3.45 gain on Friday and the back half for a 4.13 gain on Monday when VRM exploded 3 points in the first hour.

Notice that VRM tailed off once again from a test of the low 60 region.

Next!

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