Twitter ($TWTR) was almost a playbook blow off top on Thursday. A big run up followed by a volume/price top . My subscribers bought Twitter on December 8 at 46.35. We sold half at 49 and the other half around 52.50. In my face it goes to 75. Today it dropped a ten spot or 13%. I missed a big move, but caught some of it. Who knew?
If you paid 70+ and are still long, then you have your rosaries out or are drinking hard tonight. But not so fast on the depression, hysteria, 20/20 bullshit and bouts of diarrhea that you are experiencing.
The chart below explains it. Most stocks that breakout eventually retest the breakout area. That area is the red line in the chart below. It is also the area of the 10 day moving average or the 61.65 area. Resistance on December 20th should now act as support.
If this area doesn’t hold, then you know this was a hedge fund orchestrated hack job pump, so a few guys could make their month. Anyway you slice it, the stock was way overbought and nothing goes straight up, not even everyone’s fave….Twitter.
Life is way to short for 140 letters from my perch, and frankly I’m bored to tears with it, but there’s no doubt in my mind that the stock tags a 100 by year end. The why doesn’t matter.
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