Lockup expiration on Twitter (TWTR). Sell? Nope!

I’ve got just a quick one here, Twitter ( NYSE:TWTR ); this is one I think you can buy. I think the company is grossly overvalued, but does the market really care what Dan thinks? The answer is, no, not really, and neither should you. But here’s the deal, a lock-up expired on a boatload of shares, and what happened? Well the stocks up over a percent. I think it was Pete Najarian that was saying this morning he thinks a lot of this selling, not after a crappy number, I mean they didn’t have great numbers, but he thinks a lot of the selling was by investors who knew about this lock-up expiration and they were anticipating that an increase in liquidity would actually push the stock lower.

Well it didn’t do that, and so the first rule of trading, at least the first rule in my book, is that if a stock is supposed to do something and it doesn’t; then you need to reassess what it was that you’re expecting the stock to do. Typically it’s telling you that you need to go the opposite way. So with Twitter ( NYSE:TWTR ) here’s the thing; right now we have this gap down here, and since that time the stocks been gradually filling the gap. I would say buy the stock now and rethink it when the stock is in the mid-sixties, but I think you’re probably going to get more upside on Twitter ( NYSE:TWTR ), as long as this stock just keeps trading along this line, that’s really all you need to know.