Why The Founder Of Eagle Bay Capital Won't Play Twitter's Earnings

J.C. Parets was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Parets talked about playing earnings for Twitter Inc TWTR and indicated that he would rather be in a stock after the company has reported. “I’m not one to guess how the market is going to react to earnings...that’s a difficult game to play.”

As for taking a position based on technical indicators, Parets would prefer to see the stock price above an upward sloping 200-day moving average. “I like to have the tide to my back...if the market can hold above that [level], and have the 200-day start to rise, I think that would be extremely healthy, but I think a little more time might be needed.”

Parets felt no need to rush into the stock and that it would be best to wait for a better setup.

Heading into its earnings report, Twitter traded at $41.04, up 0.79 percent.

Check out the rest of the show here: