TWTR -- Twitter Early Trading

In the early trading in TWTR, looks to me that the IPO stock was allocated to institutions who want to hold it long term. Surely some long term investors jumped in and bought in the after market. It is rumored that some of the institutions that got allocations in the IPO wanted more and bought more in the aftermarket, resulting in the high price. As the company did not sell much of the company, supply was limited. 

With the high price, the shorts are drooling. Here is a chart of the trading to date:

  Chart courtesy of Stockcharts.com

How do we look at this? 

We have panic buying on day one. Some selling or profit taking on day two. Demand takes the stock up slightly on day three. 

It is hard to believe that a stock that went to this high a premium in the first week of trading can hold its gains.

The shorts are circling for the kill and I for one believe they will be on the right side of the market. 

When the long term investors who are willing to buy at this price are gone, who will buy? When you compare the amount traded with the new IPO shares, it looks like all who want in are in now.

 Do you believe as a trader that if you jump in at 42, you will see the stock jump to 50 in the next few weeks?

Rather, it seems more likely we see a 10% drop.