Looking for the next move in Tesla ($TSLA)? Here’s your trade. (September 11, 2020)


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I want to look at Tesla ( NASDAQ: TSLA ) real quick today and this is why: This stock COULD be, it may be consolidating to a point where it will give you a good trade. I don’t really see it here yet but let me frame this for you.

The stock breaks out here in anticipation of earnings and the stock split. The stock split right here on Monday the 31st and then it kind of fell off a little bit. And then what happened on Friday after the close? The S&P ( INDEXSP: .INX ) announced their changes and Tesla ( NASDAQ: TSLA ) wasn’t in the press release, so the stock gapped down.

This was the, oh crap, it’s not being added to the S&P 500 ( INDEXSP: .INX ). That was the catalyst that prompted the stock to go down. But since that time the stock has been holding up; I don’t really follow this company, I look at the stock, but I don’t really know that much about what’s going on, I have read a little bit though.

Battery Day, that’s like the big deal is Battery Day on September 22nd, which is a week from Tuesday. Tesla ( NASDAQ: TSLA ) is supposed to, it’s kind of expected that they are going to unveil a new battery that has a capacity of a million miles.

In other words, it can go a million miles before it wears out and has to be disposed of. If only they had a battery that could go a million miles without having to be recharged, I would totally be in. But with that kind of wear life; it is essentially way beyond where you would be driving the car. As I understand it, I think their battery life now is around 500 thousand, I could be wrong on that, so that could be a big deal.

The problem that I am seeing with that is, I don’t really follow Tesla ( NASDAQ: TSLA ) as a company, I don’t really follow the Tesla ( NASDAQ: TSLA ) events. And yet, if I know about this then don’t you think other people do as well, like, quite a few other people? And so if you are thinking Dan is giving me this cutting edge news that, oh, now I know. There is nothing cutting edge, there is nothing new about this. It might be new to you, it was new to me, but it’s not new to the market.

The point is, that you don’t have an edge by knowing something that other people don’t. You have an edge by understanding, first of all; maybe all of this stuff is baked in, whatever. I don’t know, their announcements are always really dicey; you just kind of never know what’s going to happen. But the bottom line is, maybe he already knows, everybody already knows, there is an initial spurt higher where the stock is bought. And then people come back saying, well, I question the demand for the car, and then they sell. We just don’t know.

What I am telling you is, over the next week, starting next week, if you are a swing trader, if you are an active trader, watch how this stock goes; because if it runs-up above $400.00, again, I am talking about Monday or Tuesday, if it runs-up above $400.00 we could see a pretty good run-up in this stock before the 22nd.

So don’t expect this to meander and float for the next week and a half, while the market waits to hear what’s going to happen. Traders are taking positions in this stock and I think next week could be your trade, if you are active, it could be your trade to take advantage of some pre-battery buying. At least that’s the way I see it.

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