Is it time to tweet Twitter (TWTR)? (May 05, 2014)
Discussed in this article: Twitter Inc ( $TWTR )
I thought I would just chime in here real quick on Twitter ( NYSE:TWTR ); I think I’ll give you a little video tweet here. I noticed that there’s somebody on TV today defending the valuation and all that jazz of this. I can’t defend buying this, I can certainly defend selling it, but I can’t defend buying this. Just the fact that the stock is down basically at a new low relative to where was on the initial push lower, that just makes me want to short it, because this is the chart gang, this is what it looks like. I cannot get it out of the lower right hand corner of the chart I just can’t do it; I guess I could do this, but that doesn’t work real well does it? So I’m telling you, I would short this stock on any strength, any kind of strength at all I would short this stock.
If you’re a “Twitterite” good luck to you, you need to get back to Apple ( NASDAQ:AAPL ), it’s a better trade. I would just look at this last low here this last week, which was on Wednesday, 37.24, that’s not too far below where the stock is right now. If this stock falls below this 37.24 level it’s going substantially lower than that, because this low was made on big volume, so that means something. If the stock falls below that big volume low this is an issue for those people who are long this stock. By the way, this is a longer-term hold that I’m talking about, as far as a short goes.
Here’s why I have to say that, because way back, I don’t know, right around $200.00 I started talking about LinkedIn ( NYSE:LNKD ) as a great short; it might have even been higher than that, but I don’t care it’s not all about me it’s about trading. I was saying, wow! This stock has been like kind of a gold mine for technical traders, because whenever it gets up to the 50-day moving average you sell it, and then whenever it gets extended down to an appreciable level you buy it back. I think I was talking about the stock here, and then the stock ultimately comes up, and some guy got snotty and emailed me, “How’s that short working out for you?” There’s somebody who kind of lost their focus, because the bottom line is, the stock was needing to go lower, it wanted to go lower, you look at the moving averages, they were telling you it was going lower.
Can I make a call on LinkedIn ( NYSE:LNKD ) now? I don’t feel like it, but if I did you know what I’d tell you, buy it. Buy it, and then when it gets back above here short it. I don’t know when earnings are, that’s important, but I’m just telling you that when a stock does what it looks like it’s supposed to be doing, that’s a good thing, trade it. Twitter ( NYSE:TWTR ) right now to me looks like it needs to go lower, trade it, that would be my suggestion.