$SNOW Potential Bottom Picking

26 mar 2021

Now that the trading week is over, we can take a closer look at how the broader markets have performed. For the most part of the week, the markets appeared to be quite choppy but now looking like we can potentially start moving higher.

If that is the case, then I think there is a potential here to bottom pick a high flying enterprise software company called Snowflake. At one point this stock was trading over 150x price to sales. It might sound ridiculous but in a controlled market where you have massive money printing, I don't think the majority of market participants are buying for fundamental cash flow. Instead, the markets appear to be competing for market share as there are only 100% possible owners of a company. :)

All in all, I categorized this technical setup as a reversal play and if the broader markets can rally then I think SNOW can run up quite substantially for the short to mid term trader.

- EnterpriseGuy