Thinking about selling Tesla (TSLA)? Think again. (July 10, 2019)
TSLA
Just a quick video today on Tesla ( NASDAQ: TSLA ). The company reports earnings in about a month, the first week in August. This is a stock that had been, as you can see, it had really been in the deep dive. You look at the weekly chart, this thing looked headed to zero, personally that is where I think it is going to be ultimately. The chart really doesn’t give a rip what I think. You can see how this thing made a big massive comeback a month ago, that was a capitulation bottom here, right here. This was a big low, a little bit lower and then a big snap hook reversal and then since that time the stock has been off to the races. So is this a short covering rally, anticipating great news and this and that? Seriously, it doesn’t really matter.
The bottom line is, the stock has been moving up for how many weeks in a row? Every single week it has had a positive close and so this is the deal: The stock is now up at $240.00; the last time it was there was last week, right? So the stock is up at $240.00. If the stock breaks through that 240.00 the way this stock is trading it is good for another $20.00 or so before earnings, if you are trading the stock that could be 8-10 percent. If you are trading options that puts you in a whole different world. Be mindful that the 200-day moving average is really a key line of demarcation and that is well above where the stock is right now.
And so what kind of news could there be between now and when earnings are reported? What kind of news could possibly come out that would knock the stock down? Really not too much because, first of all, the company will be in kind of a quiet period. They can’t just be releasing news right up until the time that they report earnings and Elon Musk thinks maybe he can, he’s always got a better idea. But even Musk isn’t going to do anything like that because the stock is working. So it is kind of one of those things where if the stock is working why should I tweet or send out an email that is conveniently leaked or anything like that?
So there is no reason for him to put out anything positive because the stock is working. And there is definitely nothing that is going to come out that is going to be negative, other than Tesla ( NASDAQ: TSLA ) bears saying, “Well, this isn’t right or that’s not right.” That isn’t affecting the way the stock is trading. So basically what I am saying is, between now and the end of this month I don’t really see any unknown or any potential issue that is going to knock this stock down.
I think that the next real test for the stock will be when the company reports earnings and then what is going to happen? Nobody really knows; nobody really knows. So between now and that point when nobody really knows, I think you ride the stock up. As long as it pops above 240.00 then I think you are good to go, in fact, I am going to set a price alert and who knows, maybe I might take a trade here, I probably will if it runs above 240.00.
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