I’m betting on the timing of this just based purely on the series of events leading up to this big decline in Twitter over earnings recently.
As you may or may not know, I took out some March calls on Twitter yesterday. That timing looks to be ok.
It’s been some time since the “for sale” conversation took place. Since then, Twitter has languished near its all time lows.
Going into earnings, I loved the last minute upgrade. It allowed some big players to unload the stock before it got bludgeoned over earnings.
Prior to earnings, I discussed Twitter being a great buy once it broke its trading lows of $16, with a target buy range of $15.50-$15.00. I figured that move would be the ultimate move of discouragement, and would surely encourage anyone holding stock to give up and accept defeat.
Today, Twitter is trending stronger than most. It’s clearly rejected that breakdown, which has become such a great trigger to enter trades.
Very bullish on this set-up and sentiment, at least in the near term.