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Answering Your Stock Market Questions With Twitter

Tuesday, 7 Jun 2011 | 9:49 AM ET
Twitter
Loic Venance | AFP | Getty Images
Twitter

Some investors, including hedge funds, are now using Twitter to track market trends and make decisions about where to put their money.

Each Friday on CNBC's "The Call" between 11am-Noon ET, we answer stock trading questions sent to us through tweets by viewers. We can't get to all of them on-air, so we're providing more advice online.

Ed Ponsi of Barchetta Capital Management, who joins our weekly "Trading on Twitter" segment,reviewed the tweeted questions we were unable to answer during the show. Here are his comments:

@themuffdaddy: I am looking to start a position in $ACC rentals on the rise. Thoughts?

ACC(American Campus Communities) looks like an ace, has been trending steadily higher for two years and is nearing its 2008 high of $37.00. The stock is off its highs, so it could be a buying opportunity. A break below 33.70 would be bearish.

@lcannataro27 OWW...after winning that trial over AA, could be promising.

OWW(Orbitz) is an appropriate ticker considering the pain that is visible on this chart. The stock did get a nice boost on high volume on Thursday’s news, but the long term downtrend is not encouraging. Since that initial pop, OWW has surrendered more than half of its gains.

@Peter_Eller10 For now, I like $AWW $WTR and $WM these 3 will continue to make rev. when pop. goes up

Be careful with WTR (Aqua America), the stock is nearing its YTD low of 21.36. Under that level, you’ll be asking, “WTF happened to my WTR”?

@stanmath: buying TZOO REDF RENN, looking at SWKS, NOK

Like a lion in a cage, TZOO (Travelzoo) is in a precarious spot…the stock had a rough week on high volume, and is now getting close to major support at $63.25. The next support under that level is $53.25.

CNBC Trading on Twitter - See Complete Coverage
CNBC Trading on Twitter - See Complete Coverage

@Bigtrades79: $LAVA had better than expected earnings and seems to want to breakout but being held back by the down market. What do you think

LAVA(Magma Design Automation) looks hot…its consolidating within an uptrend. You’re correct—this stock is trying to break higher despite a weak market. Any breakout above $7.25 would be a buying opportunity. Support is $5.85

@Bigtrades79What do you think of $FTK, should I buy more?

After lying dormant for nearly 2 years, Flotek is showing signs of life. Stock is consolidating after a nice run on high volume. On a break above $10, I’d go with the Flo!

@chrispexi: Buying Euros, selling USD

Tres bien! The uptrend is back, and volume on FXE(Currencyshares Euro Trust) [Euro vs. U.S. Dollar] is rising along with the price. Euro is breaking all resistance levels in rapid succession, and could reach $1.48 soon.

@vito_crogs: buying $CRUS, held these support levels numerous times, play pop for $AAPL chatter Monday

For a short term pop, it might work, but a close below 15 is VERY bearish. If it trades below 15, run for the exit so you don’t get crushed in CRUS (Cirrus Logic).

@KnerdKollegecom: what do you think of the social networking stock QPSA?

@Bsoderholm13; what do you think of QPSA it runs daily and is set for a break out.

@timbo757 : QPSA, I want to believe that it will hit the 15 dollar mark and think it's undervalued

We have three Amigos asking about this stock. Here’s why I like QPSA(Quepasa): Notice that when the price falls, the volume dries up but when the price rises, the volume picks up. The next test is the April 26 high of $9.64. QPSA could be looking at a big breakout!

Fuse | Getty Images

@MoneyMkr0417: bought CSTR 52.63, sold NFLX

CSTR(Coinstar) isn’t terrible, but it isn’t great. CSTR did hit a one-month low on Friday, which is negative—however this occurred on very low volume, reducing its significance. I don’t like stocks that are hitting new lows, but I’d like it even less if this had occurred on high volume. I’d call it neutral.

@informationauth: Buying nothing. holding on to QID (2x short nasdaq) Wont be fooled by this fake run up right now.

Be careful QID (ProShares UltraShort QQQ)has been in a long term downtrend but the chart appears to have flattened out, and could be setting up for a reversal. Last week’s rally puts it smack up against minor resistance near $52.50, and there is a possible Double Bottom pattern. The appearance of a higher low is also bullish for QID. Wait to see if it breaks resistance, a clean break above $53 would be bullish for QID (in other words bearish for the NASDAQ).

@YWMF: what's the play on $NFLX?

New all-time high on Friday. Despite all of the recent market turmoil, it (Netflix) doesn’t get much better than this. Look for a pullback to the former resistance (now support) at 255 as a possible long entry point.

@DavidAltonClark: How about $SD

Not bad! Nice gap higher on high volume on 5/26. Volume is dropping as SD(SandRidge Energy) pulls back. SD is in good shape as long as it can remain above $9.70; below that level it becomes bearish.

@DerrickLWilson: Buying $PLCM. Expect continued growth next 5 years.

Great chart, PLCM(Polycom) is just off its 10-year high of $61.69. Nice support on the 50-day moving average. A dip to 55 would make a nice entry point for longs.

@jjbrinks2: What do you think about US Steel (X)...time to go long?

Cross X (US Steel) off your list, there is no real reason to buy. X has been steadily trending lower since mid-February, and a new six-month low was reached on Friday. My strategy would be to short rallies.

Send your stock trading tweets to @CNBCTheCall or @MandyCNBC


Watch the next "Trading on Twitter" segment on Friday, June 10 at 11:40am ET on
"The Call."

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Disclosures:

Ponsi is long GLD, AAPL, FXE.

Disclaimer

  Price   Change %Change
ACC
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CRUS
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OUTR
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FTK
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FXE
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NFLX
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OWW
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PLCM
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QID
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SD
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TZOO
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WTR
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X
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