For his second "Executive Decision" segment of Wednesday's Mad Money program, Jim Cramer sat down with Jeff Green, founder and CEO of The Trade Desk (TTD) , to learn more about the company's latest offering, Solimar.
Green explained that Solimar is an advertising platform that allows digital marketers to do more with less, especially in the areas of connected TV, journalism and music. He said that while Google (GOOGL) is the 800-pound gorilla in the space, they've done so largely monetizing two properties, Google and YouTube. Today's internet, however, isn't as much about navigation as it is about a unified experience across an increasingly competitive landscape.
Solimar provides marketers with the insight and data they need to know what's working and what's not, which ultimately means better ads and experiences for consumers.
Let's see what the stock price has been doing. In our June 11 review and wrote that "TTD could make a recovery rally but I feel that this stock will need a period of repair and base building before I want to venture in with a buy recommendation."
In this updated daily bar chart of TTD, below, we can see that prices have rallied in the past two to three weeks. TTD is now back above the rising 50-day moving average line and the rising 200-day line.
Trading volume is lackluster and the On-Balance-Volume (OBV) line looks like it has only made a slight new high. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line but narrowing.
In this weekly Japanese candlestick chart of TTD, below, we can see two recent candles with upper shadows around $80 to tell us that traders are rejecting the highs. The small real bodies could be part of a top reversal pattern if we get confirmation.
The weekly OBV line shows improvement from May to now but it has not broken above the December peak. The MACD oscillator has crossed to the upside from below the zero line for a cover shorts buy signal.
In this daily Point and Figure chart of TTD, below, we can see that prices have reached an $80 price target. We also see that a trade at $75.21 is likely to weaken this chart.
Bottom line strategy: TTD has made a recovery rally from its May low but this may be all the gains we see for a while. Take profits on longs and stand aside for a few weeks.