Elon Musk Dumped Twitter. Should You Buy?


We have mostly red arrows to start the week on negative pandemic news out of China. Macau is shutting down many businesses including casinos. The Shanghai is -1.2% with the Hang Seng -2.7%.

SPX futures are -24 and we'll see if there's any commitment to last week’s rally as we wait for Wednesday's CPI and then bank earnings at the end of the week.

Now let's dig into some big social media and tech names:

TWTR: I’m glad I got out at $52+ when the deal was announced. I haven’t played it since then. It would be cute if it opened lower and went green. $35ish is a spot to watch. If I played it, I’d use a 5-15-30 minute low to trade against. Be very careful.

SNAP was a decent tactical buy last week. I still have some left. It needs to hold $14ish. We'll see how it responds to the Elon Musk news.

TSLA: some think it should have been up more on the TWTR news. We’ll see what happens for sentiment today. See if it stays green or if sellers get more comfortable. $723 is key support. A move above $764 opens the door for higher prices

META was cut to underperform by Needham. If it can't reclaim the $167 area, it can roll back over. This has been a problem stock all year.

AMZN participated last week and seems to be getting tighter. If it can hold $113ish, it looks like it can clear $117.

Scott's Positions Disclosure:

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