One Current Market Observation:
The IPO market is always a good indicator of market sentiment. Recently, we have seen the IPO market not just crack wide open, but we’ve seen an incredibly euphoric performance out of tickers like Circle, Figma, and Bullish.
One Nugget of Trading Wisdom:
A strong IPO market helped me break out early in my career. A lot of the patterns in the IPO market are timeless, and the concepts I used over a decade ago remain valid today.
One Reflective Question:
What is the most bullish setup for an IPO? What does it mean for an IPO to be oversubscribed and to open far above its pricing?
One 1%-Improvement Idea:
Catalog the last 50 hot IPOs, their charts, their pricing, and market sentiment at the time. There are multiple trading opportunities that were exactly the same between Circle, Figma, and Bullish. (You can also do this exercise with IPO lockup expiries!)
One Reading Recommendation:
This Investopedia article does a great job describing the IPO process and is a good primer to help you understand IPO trading.
Forget outcome. Let’s get better this month.
