Twitter Bird Drowning in Holiday Brine

TWTR is turning out to be a textbook example of a downtrending stock sliding down the "slope of hope."

We often hear about the "wall of worry" which bull markets climb, rising in the face of every apparent reason to crack. But many extremely damaged charts in the current market climate, namely the energy stocks, transports, and broken momentum/growth favorites like SHAK and TWTR, have had reasons to bottom and instead ignored the hope in favor of continuing the trend down. 

It does, indeed, "seem" like Twitter can turn the ship around at any moment. But that common feeling is probably not a sufficient reason to invest in the name. Similar comments apply to SHAK, and seeing long lines out of their doors. For now, TWTR is drowning in the sweet brine of hope for a bright future, through no fault of its own. 

As TWTR makes multi-month lows today and likely has a date with its August flash-crash temporary bottom, it is worth keeping these lessons in mind in the event we see more charts take the slope of hope lower in 2016. 

I will cover the current market and a few actionable ideas I am stalking here for Members in my usual Midday Video, filming now.