The poster child for the recent IPO binge, over-valued names and hot momentum is certainly Twitter. The run Twitter had in December from 40 up to 70 was legendary; the cascade from the selling that has occurred since earnings has also been impressive. But as we see from the chart below, the recent low matches where it was in early December before that big move upward. Further, the strong move it enjoyed on April 15 is impressive from both turnover and price standpoints. The technicals started to turn, option volume was off the charts, and once the stock broke past 42, calls were flying. With heavy shorts with some follow through, this could really power up into the 50’s – quickly!
