Just a couple of stock charts and my reading of them. Centered on Twitter and Woke Tech, with a passing mention of Disney.
The broad 500 stock market has risen nicely for 5 years, but presently topped out on Fed rate hikes. There’s a little rebound at the moment but both MACD and DMI are calling a Be Out. Volume is to the downside, but not yet big peaks, so not yet a bottom. PSAR calling for a small rally short term, but to be used to exit long positions.
Narrowing our time scope to one year:
The Russel 2000 is the bottom gold line. LOTS of weakness in the smaller stocks. The top red line QQQ is Nasdaq tech stocks. Leaders in up markets, crossing below S&P 500 in down markets. Now crossed below.
DIS Disney, the blue line, has underperformed the broad market, so is doing something wrong…
For the SPY ticker, price has crossed below the SMA stack, that has mostly inverted. Returned to it from below, and is struggling to get back above it. Signs of weakness and a market top.
So how does TWTR Twitter measure up? For a year it has underperformed Nasdaq (and FB Facebook and even DIS Disney). In Feb FB took a big hit. Might be interesting to see what Woke Broke did to them… but what interests me (other than DIS dropping by 1/3 this year…) is the Elon Put showing up in Twitter the last 2 months. Then the huge volume lift with his tender offer. Somebody is buying a LOT of Twitter stock… MACD and DMI says it is an in play buy for a trade. Though I won’t be buying as hostile takeovers are very volatile.
How about an “all data” on TWTR:
Essentially flat since the IPO with ripples. That will be a LOT of frustrated folks who expected a rocket ride and got nothing. My guess is they would love the golden hand of Elon turning things around. Watch for a proxy fight…
FB has gone from golden to cratering. Disney has been a very slow grower flat for eight years, popped for one, now rolled over and dropping ahead of the broad market. Long S&P short DIS would be an interesting hedge. At least for another 25% drop in DIS or market drop catching up.
For me, these graphs just illustrate the strength of “Get Woke, Go Broke”. So much I think you can use new Woke announcements or ESG (Environmental Social Governance) adoption to indicate candidates for shorting. Then let the faster charts be your timing guide.