InTheMoneyStock...'s  Instablog

InTheMoneyStocks.com
Send Message
InTheMoneyStocks.Com is a research and consulting company focused on mathematical proprietary techniques along with a key understanding of price, pattern and time. Through understanding geometry and other technical analysis methods, InTheMoneyStocks.Com prides itself on avoiding Wall Street hype... More
My company:
InTheMoneyStocks.com
My blog:
Pro Traders Rant and Rave Blog
  • Trading Social Media Stocks: Facebook Inc, Twitter Inc  1 comment
    May 19, 2014 10:01 AM | about stocks: TWTR, FB

    The past few weeks, the social media sector has seen some massive selling. Stocks like Facebook Inc (NASDAQ:FB), Twitter Inc (NYSE:TWTR) and Yelp Inc (NYSE:YELP) got crushed. Investors appear to be worried that these companies will generate less revenue than expected. However, if there is one thing we know, it's when the general public thinks something will happen, it typically does not. This is considered the contrarian view, and using it combined with technical analysis will help you locate great stocks to buy and sell. Furthermore, when the general public loads up on one side of the trade, either long or short, that is a big signal for the institutions to take the opposing side of the trade and squeeze out the small guy for a loss. Remember, it is the institutions that move stocks, not the mom and pop with a few thousand or hundred shares of a stock.

    Now, considering the current sentiment and studying the key technical levels, we can look for some setups...

    Let's go over the technicals of Twitter Inc (NYSE:TWTR). First, for a few months the stock traded around the $70 level, before collapsing last week to a price point of $30 a share. Most people who bought twitter around $70 are sitting on a loss off 50% in a just few months time. It's a shame when you consider how many people get pulled into the hype and greed; chasing/buying stocks when they reach such exaggerated high points. As smart traders and investors, we MUST buy stocks when they are on sale, and short stocks when they are overpriced. No smart trader was buying TWTR at $70, at that point it was all "chasers" following the heard, while the institutions prepared to take their money.

    (click to enlarge)

    Kristof De Block

    Elite Round Table

    InTheMoneyStocks

    Stocks: TWTR, FB
Back To InTheMoneyStocks.com's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • Anyoption
    , contributor
    Comments (1367) | Send Message
     
    TWTR was bound for a reality check. But I think the only way they're ever going to be viewed as a healthy company, which I believe they are making good progress towards, is when people stock comparing them to Facebook in every way.
    19 May 2014, 01:51 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

  • Utility #stocks leading markets higher despite slightly higher yields in the 10-year U.S. #Treasury. $SO, $ED, $XLU all higher today.
    Apr 20, 2015
  • $YELP Forming Bearish Chart.... http://bit.ly/YelpChart
    Apr 13, 2015
  • $WMT bearish base, daily 200-day ma. Should drop to the $78.00 level & present a good entry level to buy the stock. http://bit.ly/WMTAlert
    Apr 10, 2015
More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.