Citron Research is a firm whose claim to fame is shorting names and causing fast drops in stock price. Their effect has waned over the years and I want to give an example of a stock they tweeted about today. They tweeted an article about Wayfair and are calling for the stock to drop to $100 bucks. First and foremost, I can only assume they tweet to help their positions. In fact, it seems they are clear cut front runners. Today I am going to state my case to be a BUYER for $W.
I don’t fade the trend. I play along with the trend. I am not into picking a stock price top or a bottom. That is not how you become a successful trader in my opinion. $W has been consolidating for quite sometime and could be ready for a strong breakout. If the stock can close above the $130.60 price on a hourly chart and open immediately above, it could trigger a strong rally. Especially since Citron sent that tweet and the stock has rallied after a small initial drop. If that happens, I can see new all time highs for $W and for the stock to continue on its nice trend.