ProTip: The StockTwits Trending Bar Offers Market Clues

As stock indexes etch new highs today, the casual investor will be learning about it on tonight’s news broadcast or tomorrow morning’s newspaper. Many of them will be asking themselves the same question: “I thought we were in a correction?”

Meanwhile, active market participants who tune into StockTwits daily and pay attention to the Trending Tickers bar have likely noticed that high-beta biotech and pharma stocks have been dominating conversation in our community daily for several weeks now, nearly unabated.

Risk:ON in Biotech/Pharma continues: $IDRA $CLDN $SRPT $XOMA all trending on StockTwits

— Sean McLaughlin (@chicagosean) Feb. 24 at 08:43 AM

 

Seeing stocks like these being heavily discussed and experiencing huge upside breakouts on a regular basis is hardly a sign of a bearish, frightened, or cautious investing environment. More often, this signals investors are feeling confident putting their money to work in speculative plays, which in turn is bullish for the markets.

One can debate whether or not this type of activity is indicative of an impending blowoff top, but make no mistake — when you see stocks like this trending, you can bet investors are feeling saucy and willing to take a leap of faith with Mr. Market.

On the flip-side, on days when stocks are plunging or on the precipice, a quick perusal of the trending bar will often see index ETFs ($SPY, $QQQ, $DIA, etc.) and volatility products ($VXX, $UVXY, etc.) trending regularly. This might be your clue to back away from the markets for a little bit (or to smartly get more aggressive with your hedges or short plays).

When you see stocks on the trending bar that catch your interest, hover your mouse over the name to get a quick pop-up chart and latest prices to give you a snapshot of trading action.

Screen Shot 2014-02-24 at 12.56.40 PM 

Or you can simply click on the ticker in the trending bar and you’ll be delivered to that stock’s ticker stream to see the latest real-time conversation where you can add your two cents if you feel so inclined.

Make the StockTwits trending bar yours. Monitor it. Pay attention to what stocks/ETFs are trending and why. It’s a real-time sentiment gauge and you’ll start to notice patterns that may help you stay one step ahead of the market.

StockTwits makes it easy to take the market’s pulse — in real time.

Trade ‘em well!
~ Sean McLaughlin (@chicagosean)


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