News:
Yesterday markets failed to follow up on Wednesday’s gains. After gapping up the indexes faded all day long.
Elon Musk still wants to buy Twitter (TWTR^). In a filing released yesterday, he announced financing “commitment[s] … to provide … approximately $46.5 billion” for his take-over bid.
The board still doesn’t seem interested but users on Twitter appear to favor Musk. If shareholders get to vote on the merger I expect it to pass.
Technicals:
The Dow fell back below its support line.
But the bulls still do have room to rally…
The VIX remains below 25, the level I’ve been watching all week. And the put-to-call ratio closed oversold suggesting shorts could get squeezed and the markets could move back higher.
However, the failed breakouts and lack of follow-through are giving me pause.
I can’t tell if this is a bear trap or a bull trap so at the moment I’m remaining risk off and mostly on the sidelines.
Timing:
Just six days of trading left in April, the best month for stock.
When the market has every opportunity to rally be fails to it’s not a great sign for the bulls.
I’ve cut my watchlist as the market works to sort itself out…
Watchlist:
*Low Float
^Open Position
*BLBX has support at $4
*MDVL has resistance at $3
*AMR is on watch
TRVI has support at $3
TH has support at $6
AMPY has support at $7
^SGML has support at $15, resistance at $18
FPI has support at $15
CAR has support at $300
REI has support at $4
CRGE has support at $7
BTU is on watch
CXW has support at $13
^TWTR has support at $45