Do Your Worship at the House of Musk? Are you a Teslonian? Well, next week could be the week for you! Here’s how I’ll be trading $TSLA. (October 09, 2020)TSLA
I want to look at Tesla ( NASDAQ: TSLA ) today, here’s why: The company reports on the 21st of this month. As you guys know, this isn’t a car company it’s a church, it’s a religion; and you have got to trade the religion by the charts, that’s just the way it goes. You can love the company and you may not own any stock because maybe the stock isn’t working. Or you can hate the company but you love the stock because the stock is working.
The bottom line is, you have to trade what’s in the chart as opposed to what’s in your heart, that’s just the bottom line. But with that said, it’s important to know that this is probably the most widely watched stock and the most heavily traded stock that’s on the market these days by retail traders. Right now it is my belief is that the retail traders are the ones that are really creating a lot of the price action. You are seeing lower volume on a lot of these stocks and in the market in general even though it is rising.
What that suggests to me is, that there is not a lot of institutional order flow. It is just a lot of, maybe institutions or trading firms taking the other side, basically making a market in stocks that retail traders are trading. And so if you can understand that then you can also be trading this with a little move confidence. In this case, I look at Tesla ( NASDAQ: TSLA ), and on Thursday’s intraday high the high was 439.00, right?
And so as I look at this stock right now I think next week your trade setup could be, buy literally right here. The stock breaks out above 439.00 and you are probably going to see a heck of a nice earnings run going into the 21st of the month. If it doesn’t, why be long the stock? You want to be long because you want to make money and if this is the resistance level right here then there is no reason to buy here because you are not really giving up that much money in lost profits by simply waiting for the stock to give you a signal that it is breaking out.