Markets Fall on Twitter (TWTR) IPO Day

US market dropped sharply Thursday as the S&P engulfed two weeks of price action after making new all-time highs in the morning. The Nasdaq showed relative by dropping 1.9%, as several high beta names got hit hard.

Twitter (TWTR) IPOed to much fanfare, but once it hit the open market the meat had already been picked off the bone. The IPO was initially set in the $17-20 range last week, but due to high demand leading up to the offering was finalized at $26 yesterday. However, by the time TWTR opened for trading it had been juiced all the way up to $45 and change, a price that most macro investors balked at. The stock did enjoy an early push up to touch $50, but faded most of the afternoon to close at $44.90, below its opening print.

Although many investors were disappointed not to get a better opportunity to get involved with the social media stock, overall the IPO could be considered a success from an execution standpoint. After the Nasdaq botched the Facebook (FB) IPO last year, today’s seamless IPO could help restore some confidence in market structure.

Disclosure: Scott Redler is short SPY, BBY, GOOG calls

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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