Let’s go back to Twitter (TWTR). The dead cat didn’t really bounce. Time to move on. (July 27, 2016)
TWTR
We’re looking at Twitter ( NYSE:TWTR ), it’s down about 15 percent. Yesterday in one of my videos I was talking about Twitter ( NYSE:TWTR ). The stock had been trading down, and I said, “Look, basically this is a,” what I said yesterday, “THAT video.” Looking at the weekly chart, and noting that longer-term, you don’t want to own this stock. It’s still in a downtrend, there is nothing good looking about this at all. Support right now is, we’ll call it $14.00, which by the way, from where it’s trading right now, $14.00 is another 10 percent. You put a stop down somewhere around there, you’ve got about a 15 percent risk if you’re BUYING this stock now. DON’T DO IT. Now Jack Dorsey, if this is tweeted out, he’ll probably censor my video. The guy censors everything else that he doesn’t like. Probably one of the problems. But look, on a daily basis, we’re looking at this, hey, if the stock falls down here and stays ABOVE where it OPENED this is the time to be buying. That was the point, right? So we’re looking here, virtually immediately, like 3 minutes in it rallies up and then it falls back down. By 10:00 this rally was done, and the stock is moving lower.
So this is one of those stocks where EVEN if you were looking, even if you’re looking for a short-term trade, if you caught it at the exact bottom of the day, sold it at the exact top, well you’re a liar, but 3.5 percent is what you got. But that’s IF you did that. If you got like the in-betweens you barely made any money at all. So my point is this: Twitter ( NYSE:TWTR ) doesn’t work on any timeline. Long-term, no. Short-term, no. That trade is done and gone, over, move on. What about shorting this stock? That’s a problem too. First of all it’s a $15.00 stock. If it was a $150.00 stock maybe that’s a little different story. And yes, it does matter when you put those zeros on the end. But if you are going to short this stock, frankly, you’re late to the party. You want to wait for the stock to rally some, and then if it looks like it’s rolling over again, then you go ahead and short it. But my take on this stock, honestly, MOVE ON. If you want to deal with Twitter ( NYSE:TWTR ) go on to your account and tweet out a bunch of stuff that you think people are interested in, when actually they’re probably not. They really don’t care what you’re having for dinner.
Free Chart