snapchat a massive short squeeze or is it time for snapchat to go to the moon
talking about it in this video so stay tuned what's going on guys taking a look
here at snapchat I won't be trading today I'm not gonna go live I've got
some stuff I got to do kind of fix his camera as well so I've got some stuff I
gotta do this morning but I want to make this video this is last night so if
you're watching it right now it's last night but I want to talk about snapchat
snapchat coming out with some kind of interesting numbers they had their
earnings yesterday yesterday after hours you can see that move from the $14 area
gapping up their big move here on snapchat from the $14 area up there to
1836 looking at the numbers here on snapchat so the big news for snapchat
right now is that they've increased their daily active users which is big
news compared to Facebook they said they decreased their daily active users so
bad news were Facebook good news for a snapchat not sure that people are
leaving Facebook for snapchat but we'll kind of dive in here and kind of look at
the numbers and see what they're really talking about revenue is up a hundred
and four percent from last year advertising revenues are up over 74%
this year as well another thing is margins are up margins jumped up to 38%
compared to the last quarter which was at 25% so big move there in margins big
move and advertising revenue and then big move the active daily users are
increasing it's hard for me to believe that snapchats really killing it that
hard but hey maybe they are and I'm wrong this whole time but looking at
this chart from when they IP owed you would probably think the same thing
because if you look back here this thing I peeled back in 2017 at $24 it jumped
up to $30 and ever since then it's just been getting crushed it's got down there
to about $11 area so snapchats chart is not making investors feel confident in
their investment I would be surprised if many investors are still holding from
the IPO if they are they are brave to say the least but who knows maybe it'll
pay off maybe snapchats going to the moon here but I have a feeling that
really a lot of the moves a day on snapchat was caused by a massive short
squeeze so looking here at the chart you know what's going on why does shorts
still think the snapchat a bad bad deal I think the big issue
here is that the cash burn for snapchat they're not making a ton of money
obviously you know they're trying to grow the business trying to figure it
all out they're burning a lot of cash on advertising on you know building out the
app and all that stuff so there's a lot of cash burn but that's kind of how it
is with most of these startup tech companies snapchat isn't you know owned
by any large corporation it's really just snapchat so let's look at the chart
and kind of get an idea of where snapchat might be headed and where it
might be not headed so it gapped up there from the $14 area after-hours up
there to 1836 it pulled back down there to the 1662
and that kind of acted as support which you know if I'm a short and I got
squeezed on this and they doubled down at $18 area they're like trying to get
out well there you can see what happens from 17 dollars we opened up today it
made that move broke above that after-hours hi there at 1836 and look at
it from there from 1836 it found some support and actually kind of bounced off
the 1836 area went higher from there so I think so looking at the chart it does
seem like a lot of this was caused by shorts he had shorts piling in there
every top the shorts saw the top they thought hey this isn't gonna have to
pull back it's got to pull back right it's up 40% on the day it's got a pull
back they're trying to short it find support they get squeezed again they try
to shorty here they find support there bounces off the EMAs starts moving
higher but then kind of pulls back so I think this is really when the shorts
were like hey okay we want it's over the game is over we're shorting shorting
shorting and they're shorting there at that $20 area hoping this is gonna crash
down I was watching this during the day the volume was crazy I think there's
like 200 million shares traded on this 232 million shares straight it's a
massive volume I just don't think that's only because we were trying to buy this
cuz it's going to the moon I think a lot of that volume was shorts getting
squeezed shorts covering and then shorts doubling down and shorts trying to crash
us down if you watch this thing during the day if you watch the level 2 you
watch the chart it was insane at some point I think there was just millions of
shares going through and it was not moving so it's shorts just piling in
there just piling piling piling but they could not crash it down
you can see after that yeah the shorts covering here because now boom it's
coming up it's coming up it's coming up up there to $22 and then pull them back
down there to 2013 so big move all the way up there to 22 nothing but green
green green breaking over that $20 area moving here 21 and then pull them back
down and then you know closing pretty bullish pretty bullish close on this
holding that $20 area it was still up over 40% after hours up there to 2060
you got to keep an eye here on snapchat see this can continue can see if people
steep see it people still are gonna be trying to short the tops and people are
still gonna be trying to buy the bottoms and if the Bulls can really pump this up
cuz there's a lot of action 232 million shares traded that's got to be a record
for snapchat I mean looking at the daily chart I think it's a record
maybe back there on the IPO but overall I mean that's IP owed the record was 217
so that's 232 million shares for a today which is it's a lot of shares and if you
watch like I said if you watch a little too during the day you would have seen
how crazy it was I saw millions and millions of shares is going through and
the stock was not moving pretty crazy to see just somebody was sitting there
trying to store this thing down they might win in the long term this thing
might just start to roll off tomorrow morning and crash down but I think you
need to keep a close eye on this pre market if it wants to hold the $20 area
this thing could rip up there to 21 again up there to 22 if you look at the
daily chart you know where is that resistance at where's that support we
got a little bit of a gap in the charts this gap down from the $23 area down
there to 1759 so it's just big gap in the chart that's kind of reclaiming you
know obviously it's been selling off since then but so obviously there's just
gap in the chart when that bad earnings came out and it was kind of the first
earnings they had it gapped down but there's still a little bit gap in the
chart there I don't look up there to 22 21 94 before it only got there to $22
before so I'm thinking that this gets above 22 there's might be some room to
get up here at 23 $24 area so keep an eye on snapchat if you're looking to
short don't get too excited right away look for some you know resistance you
know you can see these if if you were too short snapchat look how
this would have played out you're trying too short the second kind of attempt at
the new high so this high here gets up about 1980 it pulls back a fine support
gets up there again to 1980 it can't break and then it pulls back down so
don't be too excited don't try to catch the top look for kind of the second
attempt at the high of day breakout and then short at that point because if you
were too short here at 21 to you might have got lucky but you probably would've
short it into this and got squeezed but if you would have waited you would have
seen okay now we're not going higher I can't break it back about 21 it's
probably a good time to short and that's but you know would have been a nice move
from 20 85 down there to 2030 but overall this stock is just bullish and
moving higher so you probably better off buying the dips on this one if it's not
gonna crash so keep an eye on snapchat like I said they've got good earnings
they've got a lot of hype around the media is talking about them they're
talking about them on CNBC you got Jim Cramer pumping it up there's a lot of
people talking about snapchat and that can cause a massive short squeeze you
got funds who have been shorting this for a long time thinking that snapchat
was going down down down well looks like the game change so if you guys have any
more comments or questions leave a comment below hit that like button and
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