Pretty good move in Twitter ($TWTR). But not the right time to buy or sell. (April 06, 2022)
TWTR
I want to talk about Twitter ( NYSE: TWTR ), not the cesspool that is the company, but rather the stock. I’m sure you know why this is up with respect to Elon Musk’s entry onto the board of directors, he’s buying, etcetera, etcetera. Okay, fine, the stock was already turning higher before this. If I recall correctly I think that he actually purchased a bunch of stock on the 13th or the 14th, I think that is when it started, maybe this is what pushed this up.
If you are a bottom-feeding kind of guy you could see that this was starting to move. It doesn’t mean anything if you are not a catfish at this point. But then finally, it’s looking nice, not a problem, it’s all good. It’s moving up a bit more and then boom, bought in, Elon. So this thing moves up a lot and then the next day it moved up even more and then sold off.
I sold some of my shares here, not at the top, not even at the open, I was kind of curious to see what would happen. I sold some of them here but I kept some more. I had sold some 55.00 calls against them to kind of hedge against the downside. Frankly, I should have sold the whole thing, obviously. But even just looking at it right now, I should have sold the whole thing. So I kind of got it half right and half wrong.
But then today, this thing gapped down but then it did close higher relative to where it opened. And so this is actually like advantage bulls, not in a big way. But if you look at this, on the weekly chart, the gap is still holding. And so this is what I would say, what I am going to say, I don’t think this is a stock that you want to buy right now, this could go either way but it is incredibly impressive, that after this kind of move the stock stayed up.
If this is where the stock opened on that news the stock is still up from there over 5 percent. If we look at where it closed on that day the stock is still up over 1.5 percent, so this is a really, really impressive situation. Maybe if the market was a little different and I was feeling a little different about things I would have probably kept some of my shares, maybe I should have. But the cool thing about trading is, that I can always buy them back.
If you are long here, I wouldn’t sell, I would keep my stop right about here, just a little bit below Monday’s intraday low because then you are in. You’re in the stock, you’ve got your loss set at around 8 percent, which would be the maximum loss that you could take. And then set an alert up here and if the stock starts running up above there then you go ahead and even just build your position. That is how I would trade Twitter ( NYSE: TWTR ) right now.
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