Since I’m getting home a little late, I am going to type out a few things that we’ll be focused on for the upcoming week. I should do this more often since I’ve made some insane calls this year, but most of them are on recorded audio behind a password as opposed to print to make its way through the internet. Here are the few topics to discuss tonight:
The Market Situation
The Russell 2000 is the only major index not at new relative highs here. However, the last two trading sessions it has traded well intra-day. I suppose it will pause at its recent highs for a bit, but any fast rejection from these highs should be noted.
Groups of Interest
I continue to focus on solar, social media, and materials stocks. My top picks are SPWR, SWKS, FB, GLUU, ADHD, ESI, APOL, WLT. I will be an active dip buyer in the social media space, and if there is one stock you isolate this week, it should be…
TWTR
I made my case at the IPO that the general public has actively ignored this idea after being cheated in FB. I can’t blame them. However, it should be noted that most “financial guru’s” are steering their audiences away from this name as well, suggesting the stock is grossly overvalued. TWTR is now my second largest equity holding, next to FSLR. I think that because most traders are suggesting that we follow the FB playbook on this stock is precisely the reason why it will do the opposite. I’m looking for TWTR to make a run for $50 and beyond this month, catching most traders off guard and creating a chase-effect. Why will investors chase? Because they don’t own it. TWTR should set the tone as to whether or not these other stocks like LNKD, FB, and YELLP will be able to break away from these multi-month trading ranges.
I suggested we’d have $60 TWTR for Christmas this year, and if that is going to happen, keep an eye on it this upcoming week.
I plan on blowing the roof off this market into year end. I hope you all plan to join me.
See you in the morning,
OA
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