A new nominee for the Darwin Award just came from Tesla (TSLA). Here’s the trade. (July 05, 2016)
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I want to look at Tesla ( NASDAQ:TSLA ), and here’s why: I’m really just looking at this pattern. This is an inside day, where Friday’s intraday high was there, the low was there. We stretch this out and this out and this is completely inside, so it’s a day of indecision, really. The bulls had the best of it because this is where the stock opened, and it closed at the high end of the day, so there’s still buying for this. But here’s the thing, this is the reason I want to go through this, I think this goes higher, simply because it’s not going lower. First, the deal is Tesla ( NASDAQ:TSLA ) is going to buy Solar City ( NASDAQ:SCTY ) (there’s a million jokes about that, but I’m not going to tell a one of them), so that drops the stock down. But the stock doesn’t stay down, it comes up.
And then this guy, God rest his soul, and I’m not trying to be irreverent here, I’m really not. I’ll just say, in my usual candid way, I have a nominee for the Darwin Awards. So there’s a guy driving a Tesla, or I should say sitting in the driver’s seat of a Tesla, which is on autopilot. This guy had 6 speeding tickets on his record. Maybe it was 7, but after a while, who really cares? So the guy has a history of speeding; he’s watching a Harry Potter movie while his car does all the work. That’s all well and good until a semi comes and pulls in front of you, it doesn’t matter if it was legal or illegal, physics is still the same, it’s Newton’s thing. Anyway, so things didn’t work out too well for him, and they’re opening an investigation. But the stock is still just about bullet proof here. The market is down today, total correction. Tesla ( NASDAQ:TSLA ), “Oh, but it’s down over a percent!” Yes, but guys an inside day, and it’s 5 days up in a row. And this is all the pullback you get with 1 percent? I mean for crying out loud, some guy died and it actually gives Harry Potter a bad name too (I wonder what scene it was}.
Anyway, so I would just say this, I’m not a Tesla ( NASDAQ:TSLA ) guy. I made a lot of money on Tesla ( NASDAQ:TSLA ), I’ve also lost a lot of money on Tesla ( NASDAQ:TSLA ). I will admit, full disclosure, though I drive a Tesla. That’s what I should have done, bought the darn car and stayed away from the stock. But anyway, what I think you do on this is, first of all, recgonize 8/3, August 3rd is when the company reports earning, I wouldn’t buy it here. I would buy it if it moves above 220.00. Because that would be a clean breakout above the 200 and the 50-day moving average, and this thing can move in a hurry. Now don’t, by any means, think that there is any kind of a trend here. You look at the 50 and the 200 and the 20, these moving averages are flopping around. This is a short-term swing trade. Literally like 2 or 3 or 4 days and you’re out. You’re buying it at 220.00. If it pops up to 240.00 you either sell some or you put in a tight stop, but that’s all. Anymore than that, you just consider it luck.
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