Facebook FB and Twitter TWTR Post-Earnings Trade
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Summary
We took a stab at a Facebook FB long yesterday, in a post-earnings trade using common shares. We also have Twitter TWTR Sept21 33 Calls. We put both through a few MarketSmith screens for good measure. Click to enlarge.
Note the checklist on the right. This is a nice feature using William O’Neil’s prefered criteria to guage FB performance. We’ll do the same with TWTR.
Funds are adding Twitter to their portfolios at a decent clip.
TWTR Post-Earnings 5/7 day rule.
We like to wait 5 to 7 days after earnings to take a new position in a company that reported earnings recently. Today is day 8 for TWTR.
We did the same on FB, taking the trade on day 8.
Considering we already have September calls, we would seek to add to our position on a breakout above 33.25. Targets 34.00, 37.00 (+/-) short-term.
If TWTR keeps rising we might also consider adding common shares in our retirement accounts, for a longer term swing position.
We’ll be Live at 9:20 AM to analyze these two further. Join Us!
Happy Trading,
Vinny
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