Weekly and monthly charts of the stocks with the highest overall intensity scores on Twitter.
We can now add Starbucks (SBUX) and most likely Oracle (ORCL) to the list of stocks with warnings from Twitter sentiment. Take a look at the charts below and you’ll see that sentiment is waning in leading stocks across several sectors. These stocks need to reverse their short term down trends and negative sentiment or it will most likely have implications for the market as a whole. Take note that most of these signals are against the trend so we’re not predicting a change in trend. Instead, these signals warn that sentiment is slowing and the stocks may need a pause or a dip before investors and traders get more bullish. We are concerned however, about the number of stocks we’re seeing with warnings…especially since they’re coming from several sectors.
Above are the stocks with the highest intensity scores on Twitter over the last week. Below are the monthly numbers.
Above are the stocks with the most Bearish intensity on Twitter over the last week. Below are the monthly numbers.
The stocks in the chart above have the highest total Twitter Intensity scores. Below are the Monthly scores.
The stocks in the chart above have the highest Bearish intensity scores on Twitter over the last week. Below are the Monthly scores.
We wanted to highlight a few Twitter sentiment charts today that are looking interesting. Please note, we don’t recommend that you base your trading decisions solely on this one indicator. It should be used as just one more piece of the puzzle when making decisions. The first one is Google (GOOG). We showed this chart last Friday when GOOG gave its first warning that traders were taking profit and losing optimism as price pushed higher. After diverging from price, smoothed sentiment broke the confirming uptrend line. Since Friday’s warning the stock has spiked higher and taken smoothed sentiment back to the down trend line that has been in place since early February. Over the next few days GOOG will either clear the warning or turn back down. The island on price is a very concerning pattern. We don’t want to see a gap down tomorrow or it could cause trouble for the stock. Remember that many people who own GOOG also own…or have owned…Apple (AAPL) during its downtrend. These traders
Here’s a quick peek at a few Twitter sentiment charts that I’ve noticed lately. Google (GOOG) is starting to warn after a good rally that started in November. Twitter sentiment has been diverging from price for three weeks and has now broken the the confirming uptrend line. Please note that this signal is against the trend so it is merely a warning that the stock may pause not a prediction of a top. If you’re long GOOG keep in mind that other holders of the stock are becoming less bullish as the stock pushes higher so it may need a rest. Ford Motor (F) is showing a positive divergence with Twitter sentiment. This is happening after a straight up run and a correction nearly back to its uptrend line from July. Keep an eye on how the stock trades near the trend line because sentiment is showing buyers as the stock falls. Facebook (FB) continues to show weak sentiment on Twitter as the price falls. It had its first divergence
Goldman Sachs (GS) and Apple (AAPL) are both up over 4% going into the close today. Meanwhile, the S&P 500 Index (SPX) is struggling at the flat line. I thought GS and AAPL were market leaders. When they rally strongly the rest of the market is supposed to follow. So where is the broad market rally? When the market doesn’t act like it should it is giving you a warning that something may be amiss. As we’ve stated before there are times when you can see that something has fundamentally shifted in the market. The last time we observed this was in mid October when both International Business Machines (IBM) and Google (GOOG) ran into trouble. That day did some serious damage to the rest of the indexes which had mostly ignored bad news up until that time. That gave sufficient warning that investors saw the bad news from IBM and GOOG as something that would impact the market as a whole, rather than just company specific stories. Today we’re
Over the past several years Apple (AAPL) has been a driving force in the market. Traders have watched AAPL on a daily basis to decide the direction and timing of trades in other stocks. They have used AAPL as a leading proxy for the market. Is this about to change? Over the past few days it appears that AAPL has disconnected from the market and traders are seeing it as a single story stock. AAPL is breaking down, but the major indexes, including Nasdaq are holding up relatively well. Can the two disconnect? Let’s compare Twitter Sentiment charts for the Nasdaq 100 (QQQ) and AAPL to see if it provides any clues. If you look at the chart below you can see that QQQ painted an initiation thrust in our daily Twitter sentiment indicator last week. It printed a very low reading on a day where price reversed. This is similar to the initiation thrust painted in late September as the market was making a sharp move down from 52