NASDAQ TARGET HIT

Back in November, I wrote this piece about the broadening formation in equities. That pattern gave an upside target of 5800 in the $COMPQ, which was hit about 30 minutes ago.

Sentiment has significantly improved and morale is the highest it’s been in quite some time.

Color me cautious here, but I’d start shopping for short term hedges.

I think the first few market declines will all be less than 5%. But there’s a big one coming this year. Don’t forget that.

It was disclosed a few minutes ago that Jack Dorsey bought 425,998 shares of $TWTR. Nice timing.

Shares of Twitter Inc. (TWTR) edged higher in the extended session Tuesday after Chief Executive Jack Dorsey bought a large chunk of shares. Twitter shares advanced 1.4% to $16.74 after hours, following a gain of 4.5% during the regular session, which put shares at a 1.4% gain year to date. In a filing with the Securities and Exchange Commission late Tuesday, Dorsey disclosed he had purchased 425,998 shares of Twitter at prices ranging from $15.84 to $16.60 a share beginning on Monday. Prior to the filing, Dorsey owned just over 15 million shares, or a 2.1% stake of outstanding shares, according to FactSet data.

I need a favor. I’m heading to Oregon this weekend. I need someone with a contact at Nike to hook me up with passes to get into the employee store.

I take my boys out to a basketball tournament there each year and this year my pass fell through.

If you can hook this up for me, I will exchange your kindness with gifts. Email me at [email protected] if you’d be willing to help me out.

Thank you.

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.

I took a loss on $AMZN this morning and went into $ARCH calls instead, which I’ve been stalking for a few weeks.

More later,

OA

That last upgrade into earnings was a ploy to unload shares to the mentally challenged going into a calamitous earnings event.

This move lower in $TWTR that is underway is going to mark it’s final move lower.

I actually think the low is already in. I don’t believe $TWTR is gunning for those lows, but I have been talking in After Hours with Option Addict about waiting for a move to take out these lows over the last few months at $16.

$15-$15.50 was the area I wanted to wait for. If that hits, I’m looking at some 2-3 month calls.