Most analysts are unenthusiastic about TWTR's price, as am I.
TWTR is 21 times its estimated 2014 sales of $1.1 billion while Facebook is priced at 11 times sales.
Nonetheless, I wise trader does not argue with the market and is out of any short position as soon as the resistance price is broken.
A stock in motion tends to stay in that motion.
Look at the volume today. It is increasing on the up move, a convincing sign.
Chart courtesy of StockCharts.com
When you are operating on one theory and the theory is violated by the market, just close our your position.
The majority opinion on Wall Street is that Twitter is overpriced. I share this opinion.
The market disagrees. The market always wins these discussions as it pretty much ignores my opinion, right or wrong.
I have learned not to argue.
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