Long TWTR Ahead of Earnings
by Mike Paulenoff
August 2, 2014 • 12:08 PM EDT
On Tuesday, we noted in our Trading Room that Twitter (TWTR) had a big cup-and-handle pattern that represented a "potentially explosive bottom."
We wrote, "As the stock heads into earnings tonight, the price structure is sitting right in its completed handle, which means that TWTR is poised for a major move -- out of the handle -- to the upside, towards my original target zone of 43.00 to 45.00.
"Trading earnings can be treacherous, especially in a high-beta name like TWTR, [but] my work tells me to hold long through earnings."
As we know, TWTR beat on EPS and revenues, jumping 33% after-hours and giving us a substantial gain on our trade from July 11.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
Ten days ago, on February 17, Mike Paulenoff posted a detailed analysis of the bond market for MPTrader members.
In it, Mike highlighted the "increasing fear" in the bond market, with longer-term rates projected to continue to rise, and in the "Fear Index" itself, the VIX, suggesting increased risk in the equity markets.
Back on February 3, Mike Paulenoff highlighted the potential for a continued rise in gasoline futures.
This past Tuesday afternoon (Feb 9), one of our long term subscribers, Sid_F, asked Mike in his MPTrader discussion room what he makes of QS (QuantumScape Corp), which develops and commercializes lithium-metal batteries for Electric Vehicles.
Mike responded: "Sid, QS looks to me like it ended a major correction from its high at $132.73 (12/22/20) into its $40.62 low (2/01/21), and for the last week or so, has been carving out a potential bottom ahead of lift-off into a powerful rally phase.
Back on November 23, Mike Paulenoff alerted MPTrader members to a long opportunity in Occidental Petroleum Corp. (OXY).
OXY, he explained, stood to benefit from the Biden Administration's "much less friendly" view of fossil fuels than its predecessor, which could result in reduced output amid increasing demand, thus lifting the price of crude oil.
Plus, technically he saw the stock in a developing multi-month base formation, and emerging from a significant double-bottom low.
This past Monday, after Vaxart, Inc. (VXRT) popped above key technical resistance, Mike Paulenoff posted a timely update alerting MPTrader members to a potentially significant upside breakout:
"VXRT has again climbed into heavy, but very consequential resistance from 8.30 to 9.45," Mike wrote. "If VXRT can chew through the resistance zone, it will be poised for upside continuation that projects 14-15 in a 'normal' market.
