No Love Lost in This Sector

In the ongoing battle between cabbies and private car social startups, TAXI sure has got its clock clean in recent quarters with the rise of Uber. This morning, though, the stock is rallying on reports the firm going private. 

The last time we looked at TAXI (which finances those valuable taxi medallions), a few quarters ago, saw us focusing on resisting the urge to pick a bottom in a downtrending chart. 

Updating the weekly chart, below, with today's gap higher, whether the firm goes private or not we do have a bullish RSI divergence to price forming (bottom pane of chart, below). 

While not an all-clear signal, it does give us something to watch in the coming weeks if the firm stays public. We are looking to see if price starts to hold recent lows, and can build on today's gap up for more than a quick pop. 

Regarding the market as a whole this morning the gap higher is holding thus far, but it is still early. GPRO continues to weaken and shows momentum can slide down the other side, and Pandora is perennial buyout target getting halted a few times this morning on a squeeze.