Tweets Versus Eats

The main issue with the early strength in Twitter's stock this morning is that it is so widely-watched and sees such knee-jerk cheerleading that it is usually best to see if the move can actually hold beyond a few hours. TWTR is still potentially in the later stages of a major bottom after enduring a severe downtrend for years after an initial, ephemeral post-IPO rally which surely sucked in a collection of longs to be subsequently battered and bruised.

So while we are certainly tracking the TWTR rally closely this morning, so too are many others, which can makes things a bit trickier to navigate and likely less smooth sailing. 

Meanwhile, under the radar we have GrubHub breaking its post-IPO resistance, a chart we have observed previously on this website and for Members. 

Note the weekly timeframe, updated below, as GRUB peeks its head above the resistance to little fanfare this morning. Indeed, plenty of attention right now is on biotech and TWTR.

But GRUB, even if it is short-term overbought now, may be the snake in the grass in terms of emerging leadership in the marker along with BABA PYPL SQ. 

Earnings are scheduled for July 27th, where I suspect the stakes will be high to see whether the growth can justify the major breakout.