Elon Musk Hostile Takeover of Twitter
Today we had some exceptional trading opportunities thanks to the volatility arising from Elon Musk’s hostile takeover of Twitter as well as the short squeeze that unfolded on Veru Inc. I executed a number of excellent trades on VERU, got stuck in a halt, and then sold toward $18 on the breakout. As for Twitter, I ended up setting two stop losses and eventually got a very nice reversal. You can watch the recap that Brian and I posted here.
Stocks in Play News: Twitter Frenzy
As you have no doubt heard, Elon Musk has launched a $43 billion hostile takeover of Twitter. The world’s richest man has announced that he will pay $54.20 per share, representing a 54% premium over the January 28 closing price, and as one would expect, that sent the shares soaring premarket. Musk first disclosed a stake of about 9% on April 4. He said it’s a “best and final” offer and that he can unlock the company’s extraordinary potential.
Global Economic News
In other news headlines, big banks, including Goldman Sachs and Citigroup, reported earnings this morning, with the bar high after JPMorgan’s results disappointed. The European Union has warned member states that President Vladimir Putin’s demand that “unfriendly countries” effectively pay for Russian gas in rubles would violate recent sanctions. President Joe Biden is sending Ukraine $800 million in new firepower, with the heavy artillery signaling a more intense military commitment. Russia is thought to be considering rolling back harsh capital controls imposed to stabilize markets, while the country also threatened to deploy nuclear weapons in and around the Baltic Sea region if Finland and Sweden join NATO. And Oleg Deripaska’s superyacht is on the move.
BBT News and Webinars
Today is Thursday Mentorship at Bear Bull Traders. I just wrapped up my 11am ET session before writing this newsletter. Ed Martin is on at 4:30pm ET (with 30 minutes of after-hours trading starting at 4pm ET) and Thor is ready to go for his 8pm ET session.
Don’t forget that the market is closed Friday in observance of Good Friday. I encourage you to spend quality time this holiday weekend with family and friends. I look forward to seeing you all on Monday morning in the chatroom.
On Saturday night, I am attending an EDM event in Vancouver featuring some of the best local DJs as well as special guest DJ Behrouz from California. If you would like to join me for an evening of EDM (9pm to 3am PT), you can order tickets here. It will be fun!
To your success,
PS: If you are able to this Easter weekend, I urge you to try out our free web-based trading simulator at stocktradingsimulator.com. It’s conveniently available 24/7, whenever you have time to practice honing your trading skills.