A Little Sting is Part of Nature

After oscillating since reporting earnings last night, emerging software star Twilio is back to selling off as I write this. TWLO is not getting demolished by any stretch, down about 4% currently.

However, bulls may feel a slight sting from the action considering the stock appeared ripe for a blast-off type of move in the pre-market after erasing last evening's losses. Still, I view this action as entirely normal when you put into context the prior rally TWLO has enjoyed, especially in the face of a violent end to 2018 for the broad market. 

As evidence, consider the TWLO monthly timeframe, below. A respite for a few days or even weeks would not be unreasonable, and may very well set up a proper, lower risk entry for patient longs to propel the stock much higher for a fresh uptrend. Ideally, $100 holds as newfound support, below. If everything unravels, $70 is the must-hold level well below spot price. 

But TWLO still has the makings of a new market leader. And my bias is to look for an actionable long entry within the next two weeks to swing the name long, and possible to buy for my long-term investing portfolio, too. 

Elsewhere, we have some rotation back into energy this morning. Two names pop out at me, which we are noting for Members. It will be interesting to see if energy bulls can hold up their end of the bargain this time around, given how often we have seen fades in that complex.