Plenty of Bird Feeders for the Twitter Bears

Headed into what should be another rambunctious TWTR earnings report this evening, it is worth noting that not much has changed since we last took a long, hard look at the stock after its last gap down in late-April. 

Back then, the idea was to look for the $36 level to act as a price magnet of sorts, essentially rendering the stock dead money for a while. At some point, the market will begin the price in the company's dominant position in social media--That is, if there is a coherent strategy from management or an inkling of an actual buyout, rather than a mere rumor-driven ephemeral intraday spike. 

The bull case is intriguing if not temping, insofar as sentiment now skewed so skeptical that the only way left is up. To be sure, bears have had a good run with the bird here, considering the Nasdaq just recently made new all-time highs--They could have easily been squeezed into oblivion in a runaway tech bull. 

Long-time readers know I abstain from playing earnings with trades. So, call me agnostic, especially in this case. But selling straddles may be something to consider. 

Beyond that, I am more interested in the GILD reaction, being a major biotech leader. Biotechs still stand to piggyback this market if we are going higher. And so instead of focusing on birds and buyouts I will be on the lookout for drugs and due diligence for more setups in the sector if all goes well.