IPO Renaissance IPO Weekly Chart; Overbot; Rising Wedge; Negative Divergence Developing

The IPO's are at fevers pitch. An orgy takes place on trading floors every time an IPO comes to market. IPO's are doubling, tripling, sometimes quadrupling, on their debuts. Traders and investors are tripping over each other buying Webvan and Pets.com with reckless abandon. If it says cloud in the company name it is worth billions.

The red lines show neggie d sans the MACD line. IPO is overbot. A rising wedge is in play. Price is straight vertical; parabolic. It is a circus. The carnival is in town. If you jumped into an IPO and are sitting on a win, get out. Take the money. All that stuff will likely reverse going forward.

The neggie d wants a spankdown now in the weekly time frame but the MACD line wants price to then come back up again for another matching high a week or two out and that would be the top and a multi-week down move follows. But you know the drill since several weekly charts are setting up similarly. Tuesday trading will be very important. The IPO weekly candlestick will begin and it will be at a  matching price high so the indicators can be assessed and if the MACD is flat or sloping down, both would be neggie d, the top is in for the chart now, and the multi-week down move begins now.

The stock market is ripe to fall. Almost every stock chart you see is in neggie d and has problems. Keystone always calls the May 2015 stock market top the last legitimate top, which it was, so everything since is fluff and froth. IPO was at 25 back then. The blue rectangle shows a flash crash back in 2015.

When the market turns down which should be at anytime, IPO will get slammed hard. It would be nice to be in it on the short side but there are so many shorts, almost everything in play now you want to be short rather than long.

For the last couple months, Keystone keeps mentioning the potential for a flash crash or Black day. Perhaps Black Tuesday tomorrow morning? It will be fun if IPO experiences another flash crash.

Keystone may move a trade or so around and bring on IPO short tomorrow because it may provide some substantive downside as equities begin selling off. You will know over the next day or two if the weekly is topped out right now or if it needs a few more days; simply watch the MACD line to see if it flattens tomorrow morning. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Sunday, 2/21/21: Whoopsies daisies. IPO drops -4% last week after the chart was posted. It has a long way down to go.

Note Added Friday Morning, 2/26/21, at 6:21 AM EST: IPO drops from 77.05 to a low at 63.80, a -17.2% crash, in only six days.