Twitter Gives Us 9% Trade in 1 Day
by Mike Paulenoff
April 19, 2014 • 12:00 AM EDT
This past Tuesday, April 15, we noted to members that Twitter (TWTR) "has the right look of a pattern that has ended a major corrective period -- from its Feb 5 high at 71.92 to its April 11 low at 39.68." We said it was "entering a recovery rally phase that should return the stock to 49.00-50.00 in the days/weeks ahead."
We entered a short-term portfolio position at 41 1/2 and exited the same day at 45.03, for a 9 percent gain.
Below is our chart from Tuesday. We're continuing to follow TWTR looking for another long opportunity.
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
This past Friday, 30 minutes before the release of Retail Sales data for April, Mike Paulenoff posted his analysis of XRT, the SPDR S&P Retail Sector ETF.
After explaining in detail his analysis, which you can read here, Mike concluded: "All of the action from the Jan. 28th high at 99.24 through Tuesday's (May 12th) higher pullback low, represents a larger, bullish digestion period and pattern atop the dominant 15 month uptrend.
Back in early February, with CVS trading at 73.19, Mike Paulenoff alerted MPTrader members to a bullish technical setup in the stock, writing:
"CVS exhibits a potentially very powerful multi-month set up, and as a matter of fact, looks like it just ended a correction from 77.23 (1/12) to 71.04 (1/29, and right at its up-sloping 50 DMA)."
He added, "If reasonably accurate, [this] means that CVS is entering a new upleg that should challenge and take out 77.
On Friday April 23, Mike Paulenoff alerted MPTrader members to an upside opportunity in Advanced Micro Devices (AMD) ahead of its earnings release on Tuesday April 27:
Mike wrote: "Right now, we should lean towards a bullish reaction to the news, and if 85 is hurdled and sustained, then AMD will be positioned for upside continuation."
However, Mike cautioned that the stock needed to get above the 90 resistance area or could stall and reverse lower.
On March 30, with Salesforce.com (CRM) trading at 210.95, Mike Paulenoff wrote MPTrader members:
"The relentless stair-step decline within the Sep.-Mar. down-channel is nearing completion ahead of my expectation of a powerful upleg that revisits and takes out the ATH at 284.87."
Fast-forward to last Thursday afternoon, April 8, when CRM finally received some long-awaited price support from Wall Street.
On March 8th, when XLI was trading at 95.88, this is what Mike Paulenoff discussed with our MPTrader Members about the S&P Industrial SPDR ETF:
"In addition to the XLB (Materials SPDR), another vehicle (arguably a better one) to ride the infrastructure spending narrative, is via the XLI Industrial ETF.
