Wednesday, November 6, 2013

Momo Train Back to Social

With the Twitter IPO tomorrow, and the cleanse that you received after earnings drops in FB, YELP, and TSLA, you have gotten rid of many of the weak hands which clears the way for the next big move higher.  We are still in the basing period, but the next surge higher should be in the social media and cloud stocks.  Solar should also be a player, as its growth is starting to win over the momo crowd and has moved it from fad status which it had in May to momo bellwether.   TSLA is probably left behind because it could just be viewed as a car maker, after yesterday's earnings.

 The Chinese internet names have been sullied by the NQ disaster, so you can't really trust those names.  It really it comes back full circle to what you have to buy.  They are NFLX, FB, LNKD, YELP, P, SPLK, CRM, SCTY, FSLR, SPWR, and add in DDD with it earnings beat and perhaps you have super powered burritos with CMG, but I wouldn't touch that, just because it is not sexy enough.  You need stock that fills the imagination with crazy growth, I just don't see a huge bubble happening in an upscale Taco Bell.  I am sure TWTR will like a fire under YELP, as this stock will be cheaper in comparison, giving justification to pay up.  YELP still has a lot of short interest and has completely shrugged off a subpar earnings report.

I do expect a pullback in the market to start within 2 weeks, so during that pullback, you have to snap up these names and ride the surge higher in December.

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