Presidium Capital chief investment officer Greg Harmon was a guest on Benzinga’s #PreMarket Prep show earlier this week, where he said that there’s really no reason or ability for a technical trader to trade an IPO because there’s no price history.
He was referring to last week’s IPO of Alibaba Group Holding Ltd BABA. If technical traders do want to use Fibonaccis in very small time frame, he said it can work really well on the first day.
But Harmon said he prefers to wait and see the stock perform for a little longer. Instead, he said he has been watching Yahoo! Inc. YHOO lately.
“There’s a lot going on in the stock, I think,” he said. “It's at some really key levels in terms of the monthly charts, and if it can get back over and stay over $42.50, hold up following this IPO, it’s got potential to move significantly higher.”
Harmon also said that some of his clients had expressed concern about momentum stocks like Apple Inc. AAPL, Facebook Inc FB and Twitter Inc TWTR.
“I think Apple is going to end up looking pretty strong,” Harmon said.
He also gave a long- and short-term outlook for Facebook and Twitter.
Check out his full interview here:
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