Two Hot IPO’s Coming Out

IPO’s are the heart and soul of speculative sentiment.

As such, hot IPO’s shine a light on the market’s intentions.

On Monday, PUBM was set to come out of a Bull Flag telegraphing a good report.

And we used it as a long idea on the Hit & Run Nightly Stock Report.

It plunged with everything on Tuesday, but jackknifed after testing the prior breakout point, closing at the top of its range before reporting Tuesday after the bell.

Wednesday, PUBM delivered on its bullish pattern with an Earnings Gap & Go.

The following daily PLL, another recent hot IPO, shows a different path.

PLL undercut its IPO low before turning up, triggering a Rule of 4 Breakout (a breakout over triple tops) at the beginning of the year which perpetuated a run to all-time highs in February.

PLL was pending another Rule of 4 Breakout prior to Tuesday’s market whiplash.

PLL closed on its highs on Tuesday leaving a Lizard buy signal — a new 10 low with the open and close in the top of the range.

It followed through on Wednesday leaving a follow-on buy signal, a Peekaboo New Closing High.

PLL looks buyable on any pullbacks.

In sum, the action in these two names reflects the speculative appetite is alive and well.

But at the same time, it also reflects the accelerated frenzy on the tape and the lack of fear of air pockets… a cautionary indication.

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