fbpx

7/11/22 Jobs, Google, & Twitter

News:

On Friday the market received some good news … A blowout jobs report.

According to the Bureau of Labor Statics, the U.S. added 372,000 jobs during the month of June. Expectations were less than 300,000.

After the report came out the market struggled to find direction.

The S&P 500 went from red to green and back to red again and again. In the end, the market closed mixed and basically flat. All indexes were +/- 0.1%. 

Google

According to an exclusive from the Wall Street Journal, “Google has proposed splitting parts … into a separate company.”


Photo by Caio from Pexels

The move is a concession to the Dept of Justice, which is reportedly considering an anti-trust suit against the company.

Shares rose less than 1% on Friday.

On a related note, Google’s parent company Alphabet (GOOG, GOOGL) is set to start trading on a split-adjusted basis on Friday, July 15. 

The 20-to-1 split was announced in February.

Twitter and Musk

In an SEC filing, Elon Musk officially terminated his merger agreement with Twitter (TWTR^).


Photo by Brett Jordan from Pexels

This had been expected by the market for some time now.

Shares fell 5% intraday and another 6% after the news broke.

Twitter executives are planning to sue and could force Musk to pay the $1 billion break-up penalty.

Technicals:

The VIX broke a critical level on Friday … Falling below 25 for the first time in a month.

June’s breakdown ultimately failed as you can see in the chart…


VIX Daily Candles – Chart via thinkorswim

I’m watching this level closely … A lower VIX favors the bulls.

Not much else to report…

  • The put-to-call ratio is neutral
  • RSI levels are unremarkable

Timing:

It’s the first full trading week of July and options expiration week… 

  • Historically July’s expiration week starts strong and ends on a weak note.
  • The headline-making CPI inflation reading is due out on Wednesday.
  • Earnings season kicks off this week too … Banks start reporting on Thursday.

Watchlist:

*Low Float
^Open Position

*USEA is on watch
*TRVI has support at $3.50, resistance at $4
*FNKO has support at $25
DNAC has support at $10
XAIR has resistance at $11
^CBIO has resistance at $1.80
TH is on watch
WVE has support at $4
^ALT has support at $12
CELH has support at $75
JKS has support at $70
OPTN has resistance at $4
DQ has support at $74
CTIC has support at $6.50
CLVS has resistance at $4
LI has support at $37.50, resistance at $40
CD has rising support
SGEN has resistance at $180

Leave a Comment

Your email address will not be published.