Reversion to Troll

Even if the rumored TWTR buyout does not materialize, a reversion to mean trade between prominent social media firms Facebook and Twitter looks to be shaping up into the end of 2016. 

For quarters on end, FB has been an undisputed Nasdaq and indeed broad market leader, making new high after new high and smashing critics to smithereens. While that occurred, TWTR was hanging on for dear life to prevent a move into the single digits.

However, FB had been lagging this week before bad news came out last night. Meanwhile, TWTR has likely reached that point where bad news is priced in, and surprises for the next few months at least may come to the upside, as we are seeing this morning. So a long TWTR/short FB bias going forward may continue to have some merit. 

GPRO and FIT may also be lumped into the category with TWTR. YELP was already out in front of them in terms of flashing signs of a durable bottom. 

Thus, the easy analysis may be to extrapolate FB (even NFLX) weakness out to AMZN GOOGL and declare those titans have topped, too. But that may be stretching it, given the latter two have yet to display any real cracks in the technical foundation, just yet.