03Nov1:25 pmEST

Try to Embrace These Losers

Human nature and behavior economics dictate that, despite recent earnings success from both BlackBerry and Twitter, at the first sign of weakness longs will be rather quick to abandon ship.

Recall that both BB (formerly BBRY, and before that RIMM) and TWTR have been mired in multi-year downtrends, devastating even the most optimistic, die-hard longs who waited until the last possible moment before likely capitulating in recent quarters. 

Updating both BB and TWTR and their daily charts, respectively below, they have each pulled back after earnings rallies in the last six weeks. As long as sell volume does not intensify, and it has not yet done so, I view these pullbacks as constructive and could easily be part and parcel of long-term turnarounds of the bullish variety. 

Going forward, BB back over $11.20 and TWTR back over $21 should put bulls back in full control to prove once and for all that these losers are now winners. 

You may be wondering how that is even possible, since the bear theses for both firms and stocks are rather obvious at this point. But consider BB reinventing itself as a self-driving software and smart grid tech firm, and the notion that no one has come close to supplanting TWTR in social. 

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