To come right to the point, it would be awfully nice if the market would stop dicking around and plunge like it’s supposed to do. All this teasing, little up, little down, little up, little down, is boring and maddening. Come on, Mr. Market. You know you’re astronomically overvalued. Get yourself right!
Speaking of little down, that’s what we got (as of pre-open, at least) as the /ES has meandered pointlessly since yesterday, producing a petite rounded top.
Taking a step back you can see that – sigh – yet AGAIN – all that has been accomplished is another lower high. Boring. Boring. BORING.
Taking yet another step back, you can further see that this produces a fractal. The cold fact of the matter is that the market is very slowly melting away, and everyone is losing money in the process. It’s Powell versus Reality, folks. And no one is winning.
Going back even farther still, you can see how we have spent weeks dicking around for no productive purpose. Brokers are delighted at the commissions, but there’s absolutely no trend to be seen.
The one unusual piece of news this morning is Elon’s bid to purchase Twitter outright for $54.20. I realize this guy is the world’s richest man, but he has fully bought into the WSB puerile style of humor. Because, ya see, 420 has to do with pot. So using the number 420 is funny. Right? Am I right? Smoking pot is naughty, so it’s funny! HAR HAR HAR. So that’s where the price came from. It was either that or $69.69, but that was prohibitive.
In the old days, offers to take companies private had fabulous premiums that made shareholders thrilled at what a bonanza they were about to enjoy. Not so here. The 54.20 bid (I’ll give you another moment to finish chuckling at that hysterically amusing price point) is in the tinted zone below. In other words, it’s a severe discount from the stock’s highs and in fact isn’t much higher than it was in June 2018.
It does make sense, however. I mean, here’s a man who needs 72 hours per day to get his work done, and he takes on ANOTHER task. But I can see the logic, because of this extensive list of the synergies between Twitter’s value proposition and Tesla’s:
