Teslonians are getting ready for the “D”. Try applying the “RM” to that trade. (Gotta watch the video to learn what “RM” is). (October 02, 2014)
I want to look at Tesla ( NASDAQ:TSLA ) real quick here. I love these guys who tweet, I just think it’s funny; Musk tweets something about time to unleash the “The D” or something like that and that’s all it is. Who knows, maybe it’s because Dan here went to work for him and he’s going to pull the curtain off of me on the 9th or probably not.
The thing is there’s conjecture that maybe they’re going to announce a new car, maybe it’s going to be a self-driving one, which is actually what I suspect the “D” stands for, so the stock goes up almost 5 percent in a day. We don’t know what this is and what you really have to do if you’re going to trade Tesla ( NASDAQ:TSLA ) is literally zoom out. If you’re in here, look how choppy it is, it seems like very rarely does the stock open where it closed the day before; it just seems so gappy.
So it’s like an ADR, it’s like a foreign company that trades overseas it’s kind of like that’s their primary market, and oh by the way they trade on the NYSE too, it’s like Nokia ( NYSE:NOK ) was. What I’m saying is it’s very difficult to trade this stock like day trading or even swing trading. Look at how tight the ranges are, and look at how tight the intraday ranges are.
So this is not, unfortunately, it’s not like it was back here; this is when you make all your money when it’s up here and it sucks you in like a true believer. Then this is when you start losing all your money, when you still believe in the company and the stock, but it’s going down and you can hardly believe it until you sell here, and then the party starts over again only this time without you.
This is not that.
So the stocks up against resistance here at I’ll say the 50-day moving average. They’ve got another month for their earnings are due to be reported. I think you’ve got to just say don’t short Tesla ( NASDAQ:TSLA ). If you short Tesla ( NASDAQ:TSLA ) frankly you deserve to lose all your money and I hope you do because there are easier trades to make than shorting Tesla ( NASDAQ:TSLA ).
You don’t have to bet against Tesla ( NASDAQ:TSLA ) if you don’t want to own the stock. If you just draw some basic trendlines here, just kind of roughly right around there, you can see the stock has breached this trendline; I just need to pick a couple different points and we can see that the trend is still intact, see what I mean? This isn’t exactly science it’s more art than anything else. What I’m saying is if you just pick a trendline, you see how the stocks trading here, you can see how the stocks been consolidating and now it’s pulling back a bit.
The way you have to trade this is not to trade it, just hold it, buy your stock and live and die by Elon Musk. I would even say because it’s so volatile, listen to me because you will hardly ever hear me say this, don’t even put in a stop. The stock could trade down to the 200-day moving average; it could trade clear down here. Know why you’re owning the stock and know how much pain tolerance you have. Just own the stock if you like Tesla ( NASDAQ:TSLA ), if you think Elon Musk knows what he’s doing.
I do not own Tesla ( NASDAQ:TSLA ) right now, full disclosure, but I’m going to buy some tomorrow and take my own advise; enough so that I’m involved but not so much that if the stock pulls back to $200.00 it’s going to freak me out. It will bum me out a little bit, but I’ll just take a little bit of stock here and I’m good to go. Don’t try to trade this stock.
This is a 15-minute chart it’s just really, really, really sloppy, I hope that I’m not talking to too many Teslonians, I see that condition happen every once in a while, it happened with the Appleonians and in the biotech area, at least in our website. Some people got all lathered up about various biotech stocks and got killed on those when they started moving the wrong way, don’t be that guy with Tesla ( NASDAQ:TSLA ).
Don’t be short the stock because you don’t want to bet against Elon Musk, the guy’s really, really smart, and he drives a really cool car, so don’t be short the stock. If you’re long the stock zoom out, that’s your chart, not this one, it’s too choppy, it will drive you nuts. This is your chart, I would say as long as this stock is above the 200-day moving average then you’re good to go.
I’m just saying that the 200-day moving average is really kind of the defining point of support here, and you’re buying it here, then this is your risk, all the way down to here. You’re not risking this much, you’re not risking this much, but you’re going to have to be willing to ride this stock all the way down to here before what, before you sell it? No! Before it even gets to a point, and listen to me, before it even gets to a point where you can start scratching your head saying, “Hey, I wonder if Tesla’s ( NASDAQ:TSLA ) a stock I should own? Because it could come that far down just before it even tests the trend.”
Ideally it would be nice to wait until Tesla ( NASDAQ:TSLA ) comes all the way down here and then buy it. Unfortunately we don’t get to have that happen because it may not do that. The point is this is your risk. If you’re saying, “Well, I’m not going to do that Dan, I’m going to have my risk be defined by today’s intraday low, 245.00.” You can do that, but the way this stock is chopping around you’ll probably get stopped out next Tuesday, it’s just that kind of stock. Just know what your risk is, don’t be short Tesla ( NASDAQ:TSLA ), have a long-term prospective on this and don’t be a fan. If you want to be a fan be my fan, but don’t be a fan of stocks it will surely come back to bite you.
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