4/20/22 Market Surge, Netflix Plummets

News:

Markets rallied all day yesterday and closed near the highs of the day. In short, the bulls had a good showing.

After the close, the picture changed as Netflix (NFLX) reported earnings and its subscriber count decreased for the first time in about 10 years.

Shares cratered in after-hours trading. At writing shares are down 27%, that’s about $40 billion in market cap that just disappeared.

Travel stock on the other hand rose after a judge ruled the CDC’s mask mandate was unlawful.

Technicals:

The Dow reclaimed a critical support level yesterday…

DIA Daily Candles – Chart via thinkorswim

And the VIX official broke its uptrend…

VIX Daily Candles – Chart via thinkorswim

RSI levels and the put-to-call ratio are neutral.

Everything looks bullish to me.

I would love to see a red open and a green close today to confirm the uptrend. At writing, futures are trading in the red.

Timing:

Today is 4/20, a date associated with smoking weed. On Twitter, it’s trending as #dogeday.

Elon Musk loves to joke around and send cryptic messages that include 420. In 2018 he said he was going to take Tesla (TSLA^) private at $420 per share. And his bid for Twitter (TWTR^) was at $54.20 per share.

In the age of memes 4/20 just might be a day that traders and investors pay a little more attention to.

My overall outlook remains bullish. A green close today will turn me back to risk on.

Watchlist:

*Low Float
^Open Position

*IPI has support at $110
*MDVL has resistance at $3
*AMR is on watch
TRVI has support at $3
HNRG has support at $4.50
CASA has resistance at $7
AMPY has support at $6.50
CEIX is on watch
^SGML has support at $15, resistance at $18
FPI has support at $15
ATER has resistance at $6.50
TDCA has support at $11
GOGO has resistance at $23.50
^LXU has support at $24
CRGE has support at $7
BTU has support at $28
CXW is on watch
^TWTR has support at $45

Leave a Comment

Your email address will not be published.