I’m a fairly conservative investor/trader so I don’t often buy IPOs until the stock has traded for several months and had a chance to shake out.

Q3 was a precarious but productive quarter in the IPO market with 63 deals priced. That compares to 83 in Q2 and 67 in Q1. We say precarious because the markets fluctuated quite a bit with the Russell 2000 down 7.4% during the quarter.

T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse.

The Twitter Top 10 portfolio has risen 2.2% this month in spite of El Pollo Loco (LOCO) that has lost over 22% from the first Friday of August. Twitter (TWTR) up 12% and Gilead Sciences (GILD) up 17% are the two standouts.

The majority of stocks in the Twitter Top 10 portfolio are performing well this month, however El Pollo Loco (LOCO) is getting crushed.

The Twitter Top 10 Portfolio continues to paint a pattern of turning the corner and moving higher. This month the portfolio is being held back by El Pollo Loco (LOCO) which is down nearly 20%.