The Stocktwits ‘FrothMeter’ …A Pause to Refresh… and Howie on CNBC’s ‘Fast Money’ (Again)

I never ‘WANT’ markets to drop, but we have had it pretty damn good for a while and I would not be surprised by a strong correction.

There are many real reasons –

1. Interest rates rising

2. Homebuilders rolling over

3. GOOD (yep not bad) economic data out of Europe – by good I mean it’s been so bad for so long and nobody cared that it might be a hint of good news that surfaces big sellers.

I have my own ‘#Lindzanity’ sentiment indicators going off as well:

1. My personal poster stocks for ‘Froth’ on Stocktwits have been $INO $VRNG $BBRY and $AMRN – people can’t seem to get enough chatter about them. I used to get upset hearing the chatter, now I dip in and read a few minutes to gauge the ‘froth’. It has been extreme.

2. Carl Icahn has made so much money that it’s time to use Twitter to toy around.

3. I have been on CNBC Fast Money now twice in two weeks and have really enjoyed it. I am so grateful to be able to talk about the things I am passionate about – mainly Stocktwits and ‘The Human Ticker’. here is the clip:

So what is one to do with this data?

I actually faded myself yesterday adding some $SDS $SPY Puts and short $SPY (live on Stocktwits). I am not selling my winners down to get hedged this time. I will have a quick trigger if the markets whip higher but have a feeling I can build a position and trade around this short over the next month or two.


  1. MutantDog says:

    I have been following INO for 3 years. I agree that the recent price movement has been overblown, which is what I guess you mean by ‘froth..’ but, do you have an informed opinion on the science, or the business case, of INO ? (put in other words, is this ‘froth’ as in AMZN, circa 2000 ? or, same time ? IYHO)

      • MutantDog says:

        As I think about it, a set of early-stage biotech issues is a wonderful proxy for market sentiment. They remind me of (very) junior gold-miners; without being tied down to any such physical anchor as the price of gold. So, inasmuch as the valuation of this type of issue is necessarily subjective, their collective price action would stand to be a mirror on the speculative community’s “animal spirits”. Clever.

        That said, I come to this thought in the mirror of your (kind) response to my previous comment, which, koan-like, did not yield meaning, even after contemplation. Again, clever, sensei.

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