Pandora Traded Kind of Freaky Into The Close

I find the market behavior into the close very interesting and significant.  If you’re trading a daily chart, a setup isn’t official until the close.  The close also has potential to feature the tension of bloated fat fucks who have watched a position reverse.  Such was the case of all major indices into today’s close.  But while the squeeze occurring in the indices didn’t last and has completely vanished afterhours, Pandora closed high-of-day.  Then it spent the next 15 minutes after cash close BLASTING ~4% higher on 2 million shares.  Eventually it settled out around $10.73 just over a percent higher.

Without reading too far into the move, I refilled my position.  I did this for three price behavior reasons:

Pandora’s relative strength throughout an otherwise murderous social sector

If Pandora can trader higher tomorrow, it’s setting up a higher low trough into the weekend

It backfilled the earnings gap

As a company, I continue to enjoy the name because they are the mobile pimps thus far.  The analysts seem too focused on premium member growth rates and the $10.00 price point.  I care for premium users not one bit.  It’s an excellent advertising venue on mobile.  That’s huge hombre.  That’s something Facebook and to a lesser extent Google struggle with.  MONETIZING MOBILE TRAFFIC IS THE BIG TO DO.   Music Genome Project is a fun music discovery tool and provides value where competitors don’t.  We’re down nearly 40% since IPO.  Fucking murderous.

So I’m looking for price to continue behaving well going forward.  A massive win for the bulls is recapturing $12 and holding above.  Bears want the opposite sub $10.  These are your signposts.