Today's Twitterd Tickers $FAZ $C $BAC $AAPL $STT

Here are the tickers making noise on StockTwits.

Apple looks ready to plunge into the abyss. If you're a regular reader of Smoking Securities, you know I think AAPL is a dog. $27 cash is great, but using using a low estimate of 4.66 EPS next year, a 10 PE makes this a $74 stock. Don't be an emotional investor attached to a brand.

Five days ago I posted about the dangers of BAC here. The message of the market is clear, this is not a place for long term investment. Any purchase of BAC stock is a speculative short term bet that takes advantage of volatility, not improving fundamentals.

Although I expected Citigroup to print a 3 handle, I didn't think it would be in the 2.80 range so quickly. This beast remains a destroyer of long term equity, and should be treated like BAC. Investors relying on TARP banks to pay dividends are playing a dangerous game.

My last mention of FAZ was here, and so far the trade is moving in the predicted direction. The uptrend in FAZ is relatively new, so further deterioration in the financial sector seems likely considering how much room this has to run. Nevertheless, keep your position size up to date because the increasing daily movement will easily shake out emotional bets.

State Street is another toxic financial that should be treated with caution. A sharp rally into resistance will occur, but there is no sign of reversal as the trend remains lower.

Keep your Benjamins close. The market continues to exhibit risk aversion and volatility. This environment requires keen position size adjustment as the daily swings continue to grow. Small bets can reap huge rewards because the tape is relatively noisy. Moreover, poor capital allocation leads to emotional trading habits that increase the risk of ruin when luck goes bad.

IMHO, the collapse of BAC, BCS and UBS threatens the viability of ETFs and ETNs like SKF and OIL. Swap agreements and debt have credit risks that may appear overnight, though some argue that is possible for the USD. Beware potential liquidity issues for leveraged products that adversely alter the tracking of the underlying index if counter party uncertainties arise.

Today's Twittered Tickers $AA $C $FAZ $SRS $USO

Here are the tickers making noise on StockTwits

Alcoa is pulling back into support, and technically remains in an uptrend. This may be a good long candidate once the market stabilizes, but stay away until another X gets printed.

Time for a wholly spurious prediction. Citi will go to three and announce there is no problem because their financial position is sound. The next day they will be bought by (insert remaining bank here) for the price of a Snicker.

FAZ looks like a strong candidate FTW as we enter another wave of financial obliteration.

I've been shorting IYR rather than buying SRS because I'm a huge pussy. That will stop now that the bears are back. This looks like a smoking long.

USO is getting slammed into its final level of support. I'll get long once I see an X printed, but if we break 27, look out below.

If you're searching for a bounce, try looking at SPY from November 20th to January 6th. Boing! My indicators say we're heading lower, so I'm selling the rips as I suspect we're due for a retest of the November lows.

StockTwits Hot Picks

Stocks buzzing on StockTwits.com

The high volume suggests accumulation, so I like small long positions and extreme caution.

Stockcharts.com isn't showing me any volume, but the trend looks good for the bulls.

These 3x's are a disciplined day traders dream, and an investors nightmare. N00bs beware.

I've felt RIMM was a dog for quite some time, and I still feel that way. It will rise with positive market sentiment, but it isn't a leader anymore.

Bouncing around the lower Bollinger doesn't seem bullish, and I like miners.

EBS looks promising if this market can keep up the rally. Options expiration will be dramatic, and I'll be relying on the StockTwits to keep me informed. Seriously, StockTwits is fantastic; hundreds of minds combing through oodles of data for community profit. The potential of the group is far from fully realized, and I hope that it continues to thrive.