Wait, You Are a Twitter Bear?

In light of how average Joe has played this stock since IPO, I find it very much appropriate to be on the other side of your liquidation.

As you well know, even your favorite and most reliable financial professionals got this stock wrong from the start. Therefore, now that everyone is liquidating, running for the hills, and lowering price targets, I find it appropriate to step in and buy here. Why? Because everyone has been wrong from the start, why trust them now? They told you to avoid this IPO based on valuation, and only after it screamed to $50 with nobody in did they admit to getting it wrong. Even douchebags like @AlphaMatt18 were coaxed into being a Twitter bull. Once retail money chased up, they are now being executed on the way back down, and thinking “they were right, this stock is going to $30.”

This has been a great social experiment, one that we’ve been pretty well in tune with. I like my chances betting against a room full of idiots here.

Disclosure: Long March TWTR Calls

OA

In every market slam, there is a particular set-up and market behavior I look for in order to participate. Normally, the fast action and high levels of volatility makes for awesome day trading conditions. However, for guys like me, it makes me pause and wait for the right spot to start trading again. We’re nearly there.

The 1-2-3 set-up we actively discuss in stocks is setting up in the Russell. Also, the action in the EEM and FXI is very constructive, especially on the weekly or monthly time frame.

Keep an eye on this chart as we’ll be discussing this at length in After Hours with Option Addict.

Top Pick: TWTR

We discussed signals to look for at market turning points last night. We had some very interesting things set-up today that we’ll need to further analyze in our session tonight. Mainly, the positive divergence between the Dow and S&P versus the Nasdaq and Russell.

Right now, I am very, very impressed with the action in solar stocks. I think this chart of CSIQ tells a very interesting story about these stocks right now

I am interested in GOGO at these prices, as well as JASO, MU and CRM.

More later,

OA

Having been invested in MJNA and PHOT for nearly two years, I have decided to add shares of CBIS and NVLX to my holdings. They look ready to pop in the way that HEMP and TRTC did prior to taking off.

More later,

OA

Holding out through dips proved to be a great strategy last year. It allowed me to hold out for some big wins and put me back into a portfolio performance mode I hadn’t seen since 03-07.

The playbook has obviously changed here, and the environment is too messy for options. Remember, fast markets are the worst when trading options. The pricing structure completely changes, correlations are back on the rise, and emotions are all over the place.

I spoke with some names that I respect the most in this industry over the weekend. Without prompting, they all share similar predictions and strategy focus for the upcoming year. This means we’ll be doing our 2014 outlook this week. I will get ideas on time/location and we’ll get something scheduled.

As for the market here today, like most others, I am stuck. We’re nearing oversold levels, which means I will have better conditions to get things back into alignment and adjust to the new surroundings. This will be the focus topic on After Hours with Option Addict today.

OA

Conditions are most definitely dicey here. However, it should be noted that on another day of red, our individual positions are not looking so bad. Keep an eye on the Russell today, as it usually leads in situations like this.

I am going to be moving things around a little. I want to take a position in CREE, RVLT, or LEDS, but am going to raise cash in order to do it. I am also looking at taking off some long term positions for an opportunity to take a large stake in a privately held company going public later this year. This will be my single greatest investment of all time.

The company name is Vivint. http://www.vivintsolar.com/en/. SCTY has a similar business model, but Vivint makes them look silly. Their infrastructure is seamless as they started in home security, but their solar division is absolutely killing it. It’s a great company and an awesome opportunity. We’ll talk about this more throughout the year, but keep it on your radar.