Donald Trump may be out of the White House, but he’s surely still generating headlines. And not just in the media – the man has made plenty of noise in the markets as well!
As you may be aware, Digital World Acquisition Corp (DWAC), the parent company of Trump’s upcoming social media app Truth Social, has been one of the wildest stocks out there:
And while DWAC has been incredibly rewarding for the bulls, last night the stock had a huge “OUCH” moment…
Let’s see what’s been happening, what may happen next, and try to answer the eternal question – Do we buy the Trump dip?
Truth Social Delayed?
An excited market is much like an excited person – even the slightest disappointment may bring major pain.
Yesterday, not long before the session’s end, rumors surfaced that the launch of Truth Social may be delayed.
Well, the news piece didn’t go unnoticed:
Shares, which have been in a fairly steady uptrend, tumbled nearly 20% in 15 minutes.
So, do we buy this dip?
Watch Out For Comments / Announcements
So far, it seems that the market is absorbing the shock quite well.
The stock is not going down any more and on the bigger picture chart, it’s still trading at high levels.
Shares are holding quite well at levels where they were just 2 days ago!
Besides, there’s a reasonable argument to be made that a “smooth” rollout was never anticipated and therefore “priced in”.
Plus, in the bigger picture, a slight delay is of no importance – it will be about the end product, and whether users like it or not.
Therefore, my current bet is on “buying the dip”, obviously, on a good bullish setup, with just one big “BUT”!
I want to see an official comment or announcement first!
I believe a comment is very likely to come – it’s the type of speculation that doesn’t go unaddressed.
Stock’s reaction to any comments may be very volatile in either direction and may easily stop you out.
I want to avoid that and if the stock holds up fine following official statements by DWAC – I will be looking at long setups for a revisit of $100.
