How to Give the Speech About the Birds and the Bears

In front of earnings on July 26th, the Twitter Bird is shocking the world.

Just when seemingly every effete financial journalist had written off the firm as having blown a golden opportunity in its market (recall how many "Twitter is Dead" articles were published), the stock looks to have bottomed at the $14 level into Memorial Day. 

Since then, as we have been tracking on this site, TWTR has made steady progress, with each dip being bought by eager hands. Today, the stock is clearing $18 with confidence, and I suspect if it can survive its looming earnings without a disastrous blow-up we are looking at a more concrete bottom than many had expected.

Of course, many had been long Twitter for the last few years, but likely threw in the towel or became so disenchanted with the price action since early-2014 that they no longer want to become emotionally attached to the name for the foreseeable future. 

And thus would be the foundation for a potential major bottom from a sentiment perspective, to boot.

To be sure, there is plenty more work ahead for TWTR bulls. That 200-day moving average above needs to be reclaimed and then start rising again, which will take a whole lot of time. We will keep updating this name, but it may be time to give "The Speech" about The Birds and the Bears.  

Put another way, if you must short something in this tape, there are likely much better targets out there.