I absolutely could not resist this trade. One of my "favorite" stocks is Mastercard - MA. It dropped $11 in the first 10 minutes of trading! I had to go long a small position at 185.67, and it was sold within 3 minutes at 189.42, for a $3.75/share profit. The reason for my "small" position instead of a larger one? This was a very risky trade. Any stock that gaps down such a large amount rarely represents a buy signal, contrary to popular belief.
Why do I love MA? Simply put - the upcoming VISA IPO. MA is mainly owned by a large number of banks and institutions who also most likely have a stake in VISA. MA is being used by the big money to set up an easy distribution of VISA IPO shares. What better way to get a premium for the VISA pricing than by pumping Mastercard, it's closest and only competitor? MA has been and will continue to be a great stock until the VISA IPO. MA is a great company for many other reasons as well, but the main catalyst is Visa. Keep an eye on this one people.
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