It was as a disappointed user of Twitter that I came to view the company, or it least its once-lofty valuation, as a fraud. While the likes of Justin Bieber and Kim Kardashian seemed to have little trouble attracting millions of followers, my own following remained stuck at 12.7k no matter what I tweeted. A half-dozen trading bulls-eyes in a row elicited no growth whatsoever in my list. Grow a business with Twitter? Not from my experience, you can’t. It was more like log-rolling, with new followers coming only if you followed them, and loudmouths with nothing to say attracting the biggest audiences. It evidently helps if you are already the host of some TV or radio show with a vast audience.
Under the circumstances, it was not hard to see the bearish menace in TWTR’s charts long ago, when the stock traded for four times its current price. Now it has achieved, and significantly exceeded, a longstanding target of mine at 14.06. Actually, the stock crushed the pivot, hitting a low tonight of 12.82 that was engineered by the sleazeballs who control TWTR in order to give them some running room to trigger off a short squeeze. I’ve speculated that the stock could be on its way to zero, but we’ll have to wait and see. In the meantime, I’d suggest using the 11.52 target shown (see inset) as a minimum downside objective for the next few weeks. _______ UPDATE (February 18, 1:48 a.m. EST) First things first. The short-squeeze projects to a minor Hidden Pivot resistance at 18.00, with a possible ‘mechanical’ buying opportunity on a pullback to 17.41, stop 17.21. This would trigger only if TWTR can push above 17.41 for at least three bars. _______UPDATE (February 19, 1:15 a.m. EST): The squeeze has turned from merely ugly to vicious, but it would become still moreso if shorts are goaded into pushing this hoax above three external peaks that lie not far above. The highest of them is January 14’s 19.16, suggesting DaBoyz will have an easy opportunity to push TWTR all the way up to late December’s highs near 23. _______ UPDATE (February 24, 9:39 p.m.): The recent peak at 18.96 failed by a hair to take out January 20’s 19.04 high, suggesting that the short squeeze may have breathed its last. Nevertheless, you could try bottom-fishing at the still-undetermined midpoint pivot, on the hourly chart, of a=18.70 (2/23); b=17.11 (2/24); c=?.