10/26 Recap. Twitter Is A Done Deal.
Before we get into today’s recap, I know I’ve been pushing Twitter as the place we all need to be hiding to avoid this market chaos and today we finally got the confirmation the deal was closing this Friday. Elon tweeted walking into Twitter HQ while simultaneously changing his bio on Twitter to “
Chief Twit”. The stock reacted positively and closed at 53.42 which is surprising because this is now a done deal and it should be $54.xx
The overall market? Yikes, what a house of horrors. We had a huge intraday reversal lower and to be honest I don’t even know why we bounced in the first place. Microsoft and Google told you 2023 was going to be an ugly year. META just printed another awful quarter after hours, and it’s sitting on a pretty do or die spot of support at 113.xx dating back to 2016 where it saw a few weeks of support. Below that, this thing can go to $70 in a flash. I think this 113 level should hold, a weekly close below it, that’s when you’d likely want to bail. These companies are posting just terrible numbers, META especially was surprising after all the guide downs, analyst cuts, and there was so much bullish options flow. This company now has an EV sub $300b, Elon is paying $44B for Twitter right now which does a fraction of the business.
The daily chart is not the best on the SPY, we printed a gravestone candle, much like the one Apple put in back in August and we all saw what happened next. I still don’t see any reason to be long the market here, we still have 2 large reports tomorrow with Amazon and Apple. After those 2 we can assess where the market is after the big 6 reported.
The dollar has continued its move lower, I’ve pointed this out for some time now because a weak dollar should be bullish equities, but it’s not here as they’re both falling simultaneously. A weaker dollar won’t help companies on this quarter, but a prolonged move lower would help them moving forward. This is a very broken chart on the DXY at the moment.
Today’s Unusual Options Flow & What Stood Out
Keep reading with a 7-day free trial
Subscribe to The Running Of The Bulltards to keep reading this post and get 7 days of free access to the full post archives.