4/26/22 Market Bounce, Twitter, Energy, & Crypto

News:

Markets swung more than 2% yesterday. The S&P 500 traded as low as -1.7% before rebounding and closing at +0.6%. The Nasdaq performed the best gaining +1.3% on the day..

The big story of the day was Twitter (TWTR^). The board reached an agreement with Elon musk to sell the company for $54.20 per share. The stock is strangely trading more than $2 below that price. I exited half my position at $52.

The energy sector was yesterday’s worst performer, giving up 3.3% while oil remains below $100 per barrel. The main driver of energy prices right now is China.

China’s “zero-covid” policy is struggling. The Shanghai outbreak appears to be easing. But now the capital Beijing is facing an “urgent and grim” situation according to reports.

On the crypto front Fidelity, the nation’s largest retirement-plan provider, will begin allowing Bitcoin^ investments in 401(k) accounts later this year, according to the Wall Street Journal. The move adds billions in potential buying power into the crypto market. I remain a buyer.

Bitcoin is trading above $40,000 again at writing.

Also notable, Dogecoin (DOGE^) is up nearly 30% in the last 24 hours. No reason other than Elon sympathy that I can find.

Technicals:

The VIX remains very high after breaking out above 25. (bearish)

RSI levels stayed in check and are neutral this morning.

The put-to-call ratio remains oversold. If markets open red (futures are all negative) we could squeeze higher into the close. (bullish)

The SPY has support near yesterday’s lows. (bullish)

SPY Daily Candles – Chart via thinkorswim

Timing:

We’re still in the middle of earnings season. I’m watching for stories to emerge … Did you notice Coca-Cola (KO) reached all-time highs yesterday?

April marks the end of the best six months in the market. Historically, May through October are the worst-performing months.

I’ll be keeping a close on how the month closes. We could be in for a rough summer, which could be full of buying opportunities.

Watchlist:

*Low Float
^Open Position

*HPK has resistance at $35
*BLBX has support at $4
^CYN has support at $2
NKTX is on watch
^AMPY has support at $6.50
^SGML has support at $15
FPI has support at $14, resistance at $15
TCDA has support at $11
^VERU has resistance at $14
^REI has support at $4
CXW has support at $12

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