Twitter (TWTR) purged millions of accounts, and bulls purged millions of shares. The stock sold off on massive volume today, but did rebound off $42 — which is established support. I wouldn’t buy the stock here…but this video tells you exactly what I would do now. (July 09, 2018)
TWTR
Twitter ( NYSE: TWTR ). Here’s the deal: Apparently, you may not believe this but it is true, there are a lot of fake accounts on Twitter ( NYSE: TWTR ). They are kind of purging them, not kind of, they are purging millions of accounts and so bulls purged millions of shares today, like 107 thousand to be exact. You can look at the kind of volume. Now, this stock, this is the biggest volume bar that I have seen on this stock that is red. The green ones, the institutions, they are buying here so Twitter ( NYSE: TWTR ) gets added to the S&P ( INDEXCBOE: .INX ), right?
This is a stock that has gone up quite a bit. It is on our Growth Stock List, I put it on back here. This has been a pretty good trade for us we are up 30 percent. So if you are a member, here’s the thing, you need to sell some now. If you bought it here when we put it on the list you need to sell some here even though it is down $2.50 today and this is why: Because you are up 30 some percent and you can’t spit in the markets face you have got to take some profits on that. Take half off or something like that. The way I look at this is, I am not really seeing a chance for a quick reversal and a breakout because I don’t know what that catalyst is going to be. Maybe Kim Kardashian will do something. I don’t know what because I don’t follow her. Yes, it’s true we don’t ALL follow her.
What I would be concerned about is this: You get this big move up on Friday, I added to my position on Friday, I’m one of those guys. And then the stock reverses today and all of the sudden I am looking at it going, hmm, I don’t like the way this is working and so I lighten up. Well, I am not the only guy that has done that and I guarantee that I’m not the last guy that has done that. And so in my world any kind of a reversal, any kind of a move higher tomorrow is probably going to get hit with more selling.
Does that mean I think the stock is going lower? No. It just means that I don’t think it is going higher. And because I don’t think it is going higher, again, I my world it is a stock that I am not really interested in trading. If you are still long the stock, there is really no reason not to be, unless, you bought it back here. Then you go ahead and take some profits. The stock is telling you that institutions are starting to sell this stock and so you want to be taking profits now.
Frankly, do you know where I think your best buy point is? I think your best buy point is when the stock prints an all-time high. Because if or when it does THAT what that is telling you is, that all these fine folks who bought here are now winners instead of losers. So they’re going to be happily holding; others are going to be rushing in to buy. And you are going to get another move to the upside. That is how I would trade Twitter ( NYSE: TWTR ).
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