AT&T (T) telecommunication giant has just agreed to buy DirecTV for a massive $48.5 billion dollars! AT&T’s website discusses some of the benefits of the deal. AT&T looks to become content creator and distributor across platforms. The company says it will host a conference call Monday May 19, 2014 at 8:30 am, to further discuss details of the acquisition. AT&T has been trading in a fifty two week range of 31.74-37.44, and is currently near its fifty two week highs at 36.74. AT&T has agreed to buy DirecTV for $95 per share. The deal will comprise of $28.50 per share in cash and 66.50 per share in AT&T stock. DirecTV shareholders will receive 1.905 shares of AT&T if the stock is below 34.50 and shareholders will receive 1.724 share if the stock closes 38.58 or above. Regardless DirecTV shareholders should receive a $66.50 in value of shares in AT&T. DirecTV has been trading in a fifty two week range between $57.05-89.46, the stock closed on Friday at $86.18. The deal seems to be a fair deal to DirecTV shareholders. With this big of a deal on the table expect both stocks to be choppy as weary investors make sense of the deal. There is also still the issue of how regulators will react to the proposed acquisition. The Time Warner Cable (TWC) and Comcast (CMCSA) deal announced earlier this year is still in regulators hands; so don’t expect this deal to pass through overnight without some hurdles to overcome. These deals and others proposed in the telecommunication and TV network industries suggest a bigger trend than individual stocks and companies. There have been three major and very similar mergers and acquisitions proposed this year in this industry. These deals each suggesting that the industries want to merge and reshape the entire telecommunication and TV network industry.

Shares of World Wrestling Entertainment (WWE) plummeted (-43%) today! The stock is currently down $-8.67 and has been trading in a fifty two week range of $8.96-$31.98. Year to date the stock has underperformed the market. World Wrestling Entertainment dropping after failing to secure another TV network deal. After launching its WWE network subscription service it essentially cannibalized the company’s current business model. World Wrestling Entertainment’s new business model is similar to that of a Netflix (NFLX), with a library of wrestling matches and pay-per-view type matches. Investors are unhappy about the new business model and the company’s inability to generate new and consistent subscriber growth. If we look at (WWE) on the Ichimoku Cloud, the stock has been trading in a very bearish channel. The stock is currently trading below the cloud.

The headlines today are filled with mostly bearish stories and grim reminders of when “the sky fell” in the 2008 market free fall. Today we saw soft predictions of a market top. After all analyst would hate to be wrong yet again about another market correction. Those who sold the so called “top” last year, missed out on so much of this raging bull market. As a trader it doesn’t matter who’s right; it doesn’t matter who gets the gold star for predicting the top. It doesn’t matter if the market is bullish or bearish; the only thing that matters is that your moving with the market. All of this bearish talk today and uncertainty about the market creates volatility. Volatility creates opportunity as a trader. Remember the market takes the stairs up and the elevator down in a bearish market. Don’t be afraid of the bear, some of the best days as a trader are created by uncertainty in the market, volatility, and bearish turns in the market. Today the markets are a little bit choppy but for the most part unchanged overall as investors look to pick which side of the market they want to be on.