Here is your trade on Tesla ($TSLA) – October 12, 2022
TSLA AAPL
I want to look at Tesla ( NASDAQ: TSLA ) today. If you caught me on Power Lunch yesterday I did say that most stocks are crap, which I think is probably the first time that has ever been said on a financial news network, but what are you going to do?
One of the stocks that I mentioned, though, I don’t think we had much time to go into it, was Tesla ( NASDAQ: TSLA ). A lot of pundits are talking about how we can count on Apple ( NASDAQ: AAPL )) to prop up the market and all that. I don’t think so for various reasons. The fundamentals do show a really slow down but it really just seems like this is kind of toppy.
I said that Tesla ( NASDAQ: TSLA ) is another one, this thing is going a lot lower, a lot lower. But I said the fundamentals in Tesla ( NASDAQ: TSLA ) are actually better than Apple’s ( NASDAQ: AAPL ). And so I heard from a few people who were telling me I was full of crap. And while that may very well be, some of that is just my age and a few other reasons, but I kind of stand by that.
Here’s why, what I am talking about are growth numbers, I am not talking about cash in the bank. I am not talking about what they do, I am talking about the growth or lack thereof. The acceleration in year-over-year quarterly earnings per share, revenue, what their profit margins are, and stuff like that. Both of these, Tesla ( NASDAQ: TSLA ) and Apple ( NASDAQ: AAPL ), the upward momentum of growth is slowing. It is slowing dramatically, actually.
Apple ( NASDAQ: AAPL ), this last quarter didn’t earn money. And so that is why I am saying neither Apple ( NASDAQ: AAPL ) nor Tesla ( NASDAQ: TSLA ) are really going to be where you want to be.
And I will say this, I think institutions, a lot of institutions are kind of bailing out of this. If they weren’t this stock would be going up. Just be careful about being one of these retail investors, who you are betting on Tesla ( NASDAQ: TSLA ) because you like Elon Musk. Or because you believe in electric vehicles or something like that.
You only make money when a stock goes up. You don’t make money when you are right. And so I would say, in fact, I am going to say, you are wrong to be owning either one of these stocks, okay?
With that said, Tesla ( NASDAQ: TSLA ) does look like it is really poised for a face-ripping rally. Because it is actually testing this last low here from May. It has had a heck of a fall here, down a third, 33 percent. So with any kind of good news, not even just necessarily aimed at Tesla ( NASDAQ: TSLA ) but just in general, any market news, I think you could see this stock really rip higher.
So this would be my suggestion, we look here at the low of 206.85. If you are buying this stock I would wait for it to come up a little bit so you know that there are buyers in. And then I would put my stop just a little bit below this horizontal line. So if it falls below these 2 bottoms, then you are out. And that is a pretty low-risk trade.
What the reward is going to be, I couldn’t tell you. It just all depends on what’s happening. The company reports earnings on the 19th, we’re at the 12th now so it’s in a week. I think this could be a catalyst for a nice rebound rally, a nice counter-trend rebound.
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