Here’s how I’m trading Tesla (TSLA) tomorrow at the open. (April 24, 2019)

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I am talking here about how to trade Tesla ( NASDAQ: TSLA ) tomorrow morning. This has everything to do with the psychology of traders; just kind of market dynamics, and the price action. It really has nothing to do with the earnings; I don’t purport to know much about that. Even if I did, which I don’t, I still wouldn’t posit a notion on that.

Here’s what we need to know: Frankly, I think Tesla ( NASDAQ: TSLA ) is a stock that you can buy tomorrow unless it gaps up a lot. This is really what I am talking about; you just have to look at the way, just a real macro view, squint your eyes and look at the chart, you will see this, you will see this, and you will see this. Now open your eyes a bit and you will see all this other stuff.

But generally speaking, every time the stock has come down to this 250.00, that’s when apparently “Elron” is going to get his margin call. I don’t know if that’s true but that’s what I hear but then I typically hear that from people that hate Tesla ( NASDAQ: TSLA ). I don’t really feel that way, I honestly don’t. I know every once in a while I will post something that is less than glowing about Tesla ( NASDAQ: TSLA ) but, frankly, I think that’s more like red meat for the “Teslonians” and the Tesla ( NASDAQ: TSLA ) haters.

It’s just a stock but it’s a stock that you have to understand what’s happening here. The stock is still priced as if it is a growth stock even though it’s really not. It’s losing money, they’re selling fewer cars and all that. The guy makes these promises every single time and they have no footing in reality. He was making the same promises a couple of years ago as he is making now. I’m not griping about it I am just saying it’s true; he’s doing the same thing now.

Now, why does that matter? It matters because the market continues to believe it. The chart is a mess I get that. But again, the stock is priced like it is a growth stock; it is not really priced like a car company. The company better be growing a lot and it better have good prospects. There has got to be a reason for people to pay an abnormally high price for this company. There has to be a reason, and right now the reason is really kind of hope and belief. And also, I think, you have got institutions that are defending this stock.

Again, I am not griping about it I have no position in this stock, I might trade it tomorrow. What I am saying is, as I looked at the stock trade after hours you will notice the initial move is always wrong, it just is. And then the stock traded down. It never got to 250.00 but volume sure picked up. It’s like somebody came in and said, “Holy crap! We can’t let this thing fall through 250.00,” and so they pushed the stock back up.

So I am looking at 250.00, frankly, as a line in the sand. So if you are buying the stock at 260.00 right now, you’ve got less than a 4 percent risk right here. That’s what I am really talking about. I am saying that every single quarter it seems like the company reports some fairly dismal results but then the stock rallies, and then the downtrend continues. So I am telling you, right now if you are looking at this chart, if you are rooting against Tesla ( NASDAQ: TSLA ) I think you are going in the wrong direction, I really do.

I think that you have to pay attention to the zigzags. You have to pay attention to this kind of move. The next move is up, I am just telling you, the next move is up. If the stock trades, even just below yesterday’s intraday low, frankly, if you are really aggressive, I would buy more. Look at the stock and at some point in time the wheels are going to come off the wagon. But the Tesla ( NASDAQ: TSLA ) haters have been making that bet for last, lord knows, how many quarters in a row and the stock always rebounds. I know a lot of people are attracted to Tesla ( NASDAQ: TSLA ) like flies to crap and moths to a flame.

I am telling you, on this one, I think you can actually be trading this to the long side tomorrow. HOPE that the stock comes down in after hours tonight. HOPE that they get some downgrades tomorrow and then watch 250.00. If the stock actually does trade down to 250.00, if it happens to trade down this low before the market opens tomorrow, watch and see what happens to that stock; because I am telling you, I don’t care what the numbers are, I don’t care what the promises are, if they are totally full of crap or if it’s true, if the stock trades to 250.00 do not expect this, that is only going to happen one time. And betting that this time is that time, that has been a bad bet in the past; 250.00, boom, 250.00, boom, 250.00, boom, boom, boom, boom, boom. And so here, we are back down here, look for the boom. That’s all I am telling you.

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