Twitter (TWTR) has had a relatively strong month and for a very good reason. However, over the past week, the stock seems to have started turn in the negative direction. Today, we'll talk about why the stock has had a relatively strong month, why we're starting to see declines, and what binary options traders should be watching for when trading Twitter. So, let's get right to it.

Twitter's Gains This Month Are The Result Of Video Streaming News

Twitter has been dealing with issues that are the result of poor user growth on the social network. For the most part, the company has focused on advertisers rather than users. As a result, the stock continued to take a dive. However, recently, the company announced that it was working its way into the streaming video industry. The goal here is to get users to sign up for Twitter by offering them free streaming entertainment.

In order to do so, Twitter has made several strong relationships with huge sports entertainment content providers. For example, the company now has agreements with the National Football League (NFL), National Basketball Association (NBA), and Major League Baseball (MLB).

Now that the company has relationships with great content providers, the company is working on the next step of the plan… putting together a service. At the moment, the company is in talks with Apple (AAPL). The hopes of these talks are essentially that Apple will add a Twitter streaming video app to Apple TV. If this works out, Twitter will find its way into the Apple ecosystem. This could open the door to several new users signing up for the social network.

Why Twitter Is Starting To See Declines

While it seems as though investors have been taking a more bullish approach on Twitter lately, more recently, we've seen more declines. In fact, the past five trading sessions have been rough on the stock. When I saw this, I decided to do some digging to see if there was any more fundamental news offered that would justify a change in direction. All in all, I wasn't able to find anything inherently negative.

Nonetheless, I do believe that there's a good reason that we're back to declines on Twitter. The truth is that throughout the history of the company, they have left much to be desired. Somehow, the company has been able to survive without producing a single penny in real profits. I think that investors are realizing that the gains based on the streaming video idea are now getting out of hand. While we know that Twitter can come up with great ideas, we also know that the company is horrible when it comes to meaningful execution. As a result, investors seem to be getting cold feet.

What Binary Options Traders Should Be Watching For

As binary options traders, our job is to find and take advantage of trends in the market. In the case of Twitter, figuring out which direction this stock is heading is relatively simple. There are just a couple of things that you're going to want to watch for. First and foremost, the hype has died down a bit with regard to the streaming video. With less buzz and excitement, investors are getting cold feet. However, if we start to see more media coverage on this process, we can expect to see gains in the value of the stock. If not, declines are likely to continue. Also, keep a close eye on overall market and economic releases. As one of the weaker stocks on the blue chip market, Twitter can see big movement as the result of macro-economic news.