Chart of the Day - Tuesday, August 2nd, 2022

Today’s Chart of the Day was shared by Arun Chopra (@FusionptCapital). It's a 15-min candlestick chart of AMTD Digital ($HKD) since its public debut on July 15th. The stock has gone parabolic, surging nearly 13,000% from $13 to $1,679 in less than a month. At one point today, this little-known company surpassed Facebook in market cap. It's also suspicious that $HKD's parent company, $AMTD, has a terrible track record underwriting IPOs. This reminds us of something that the legendary technician, Bob Farrell, once said - "Parabolic advances usually go further than you think, but they do not correct by going sideways." In other words, this thing could continue towards the stratosphere in the short term, but once the momentum disappears, it will likely fall as fast as it rose.