Below are charts of the intensity of the most active stocks on Twitter for the past week and month.
Below are the charts of the most active stocks on Twitter over the past week and month. Notice that GLD beat Apple (AAPL) this week. This is the first time we’ve seen any stock out pace AAPL. However, we’ve seen activity for AAPL trend lower over the past few months.
With earnings season upon us we thought it would be a good time to show some charts of Twitter sentiment for stocks that are reporting over the next couple of days. Please note that all of the charts are as of last Friday’s close. Our first chart is of Citigroup (C) which reported this morning. Before you say anything…yes we realize that this chart isn’t “Pre-Earnings”, but in fairness we did Tweet about Citigroup on April 8th. I don’t always post charts here on the site so you’ll want to follow us @DownsideHedge to get all the chart updates. Citigroup signaled that its consolidation was likely over at the close on April 5th by painting a positive divergence in smoothed sentiment that ultimately broke its down trend line. Smoothed sentiment is currently confirming the up trend which tells us that people were accumulating the stock before the earnings release this morning. It won’t signal a consolidation warning until smoothed sentiment paints a negative divergence with price and then breaks the
Below are charts of the stocks with the highest bullish intensity on Twitter over the last week and month.
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.
Something interesting is happening with Intel (INTC). As price continues to fall the Twitter Stock Sentiment Indicator for INTC continues to rise. This positive divergence reflects the fact that many people believe INTC is a good value at these levels. I’m not a fan of catching falling knives (unless of course it’s re-balancing in a stock hedging strategy) so I wouldn’t make any purchases of INTC at this point. But I would keep my eye on this stock because tweets in the past have been a good indicator of the next major price move. Back in early August, our Twitter Sentiment Indicator for INTC had a negative divergence with price. The stock had traded into the 24.5 range four times. Each time it held support and bounced. However, traders didn’t seem to believe the move that started in late July even though price moved above two previous short term highs. As the stock traded higher, traders tweets did not support the move resulting in the negative divergence. Then as INTC