Brian Nowak of Morgan Stanley lowered his price target on shares of Action Alerts PLUS holding Twitter (TWTR) on Thursday from $18 a share to $16. Not a huge drop in expectations, but still, not what bulls wanted to see. That said, I couldn't help but notice how quickly TWTR recovered its pre-market losses the moment Thursday's opening bell rang. The stock jumped from under $16.90 to nearly $17.60 in about 15 minutes. While the stock did, ultimately, drift back down toward lows to close out the session, I can't help but wonder how the stock would have performed had the broad market not been under such pressure.
My view on shares of TWTR is pretty simple. While the stock needs to break above $17 to attract a more-committed group of buyers, I am interested in tracking the stock (once again) and looking for day-timeframe opportunities as long as it continues to close above $15.50.
For those that have expressed continued interest in shares of International Business Machines(IBM), the area of support I'd be keying off of is $144 to roughly $145.75. That zone represents both the 200-day Simple Moving Average and Mar. 24 swing low.
The Market Vectors Gold Miners ETF (GDX) had a good day Thursday, but the overwhelming majority of gains came as a result of the morning gap. Put another way, regular session traders were left out in the cold. Nonetheless, this sector looks strong, and I'd be careful trying to sell the GDX short through $21.
The $16 level has been pretty important for United States Steel (X) over the past few weeks. A meaningful break and close beneath that figure is not something I'd be too quick to fade (buy).
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