Below are the intensity charts for the most active stocks on Twitter for the week and month ending 10/1/13.
I’ve often talked about looking at your own portfolio to get a feel for the underlying market. Over the weekend I noticed a pattern repeating in a wide variety of the stocks I actively track that can provide an indication of where the market is likely to go next. There are several stocks across almost every sector that are currently painting multi-month consolidation patterns. Many of these patterns consist of fairly wide and loose sideways or down patterns where the difference between peaks and valleys are in the 10% or more range. These wide consolidations show the growing uncertainty among investors as they have been reluctant to push a broad cross section of stocks to higher prices. At the same time many of the stocks aren’t being pushed substantially lower. At this point the stocks are still mostly consolidating, but their performance over the next month or so will likely show the market’s hand. If they start to break higher the market will go with them. If they break down
Retail stocks such as Wal-Mart (WMT), Costco (COST), and J.C. Penney (JCP) are near the top of the most bearish stocks on Twitter this week. On the monthly list more retailers like Abercrombie & Fitch (ANF), Aeropostale (ARO), Nordstrom (JWN), Macy’s (M), and Staples (SPLS) are added to the mix which shows a building negative bias for all types of retail. Below are charts with the bearish intensity scores of the most bearish stocks on Twitter over the week and month ended 9/3/13.
Generally the most bullish stocks on Twitter have a theme where traders and investors are moving to stocks in a specific sector. This week the most bullish stocks a fairly evenly split between many sectors. Below are charts with the bullish intensity scores of the most bullish stocks on Twitter for the week and month ending 8/6/13.
Below are charts with the bearish intensity scores for the most bearish stocks on Twitter. Week and month ending 7/23/13.
Below are charts of the most active stocks on Twitter for the week and month ending 7/23/13. Here’s a chart with the status of the 50 most active stocks on Twitter.
Below are charts of the bullish intensity scores for the most bullish stocks on Twitter for the week and month ending 6/4/13.
Currently, 70% of the 50 most active stocks on Twitter are showing bullish chart patterns, while only 14% are showing bearish patterns. This is in contrast to last month when we saw the highest number of stocks ever warning of consolidation. Please note that the most active stocks on Twitter should have a positive bias simply because people tend to talk more about winners than losers. Although the vast majority of charts looked good and had sentiment confirming in one way or another, we did see quite a few stocks that are still well below their last high. This is a bit troubling considering the S&P 500 Index (SPX) is sitting at a new high today. Michael Kors (KORS), Morgan Stanley (MS), and Ford (F) are some examples. Yesterday we posted a video about how we trade stocks using Twitter sentiment along with a chart of Goldman Sachs (GS) as an example. Here are a few more examples from recent days. eBay (EBAY) provides a good example of