Twitter Potheads Playing Hacky Sack at the $14 Level

Billionaire investor, not to mention increasingly controversial Silicon Valley legend, Peter Thiel, went on CNBC a few years back and chided Twitter as being a “horribly mismanaged” company with a lot of "pot-smoking" going on.

At the time Thiel made those statements, the stock for Twitter was trading around $50 per share. 

Just yesterday, for comparison, it flirted with another major breakdown below $14. 

However, the further down TWTR pushes at this stage, after many quarters of capital destruction, the more likely we see at least some reprieve to at least keep shorts honest. We looked at this thesis yesterday, and into the long, holiday weekend, as well as headed into the Annual Meeting this evening, you get the sense this is a make-or-break moment for easygoing bunch at Twitter. 

On the updated daily chart, below, the initial breakdown below $14 failed yesterday, right as the Bollinger Bands began to pinch in hard. This technical circumstance implies that the next big directional move for TWTR is now more likely than not to materialize. And, circling back to the point made above, if bears get caught with theur hands in the cookie jar here, the move below yesterday could easily have been a short-term trap to spark some type of relief rally or even squeeze. 

The key now is for the Twitter Annual Meeting to go smoothly and not reek of incompetence. 

For bulls, here is to hoping management uses Visine before tonight's Annual Meeting.