Many are bemoaning the fact that the market was so bad ahead of Facebook’s first day of trading. They are suggesting that unloading the shares into such a market is a bad sign for the stock, and for the market as a whole.
Facebook should come in at #2 on the all-time IPO size list. So let’s look at #1, Visa.
That stock hit the market on March 19, 2008. In case you don’t remember, the market wasn’t exactly roaring at the time. In fact, the S&P 500 had dropped by more than 20% over the past five months.
After the IPO hit the tape? The S&P proceeded to rally more than 11% during the next two months.
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About The Author
Sundial Capital Research, Inc. is a company dedicated to the research and practical application of mass psychology to the financial markets. Sundial publishes the sentimenTrader.com website.
The work of Sundial Capital Research has been mentioned in publications such as Barron’s, CNN, CNBC, SFO Magazine, The Economist, Reuters, The Wall Street Journal, Active Trader, Futures, TheStreet.com, TradingMarkets, and many others.
Sundial Capital Research founder Jason Goepfert won the 2004 Charles Dow Award for excellence in technical analysis from the Market Technicians Association. SentimenTrader.com won the award for Most Useful Website for Traders in 2008 from SpikeTrade.com.