Check the dynamics on $TSLA and $AXP – July 22, 2022


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I want to discuss, real quickly, what’s going on in the market. We are looking at Tesla ( NASDAQ: TSLA ). Tesla ( NASDAQ: TSLA ) reported good earnings, and a couple of other things, the stock ran up 10 percent, which is a pretty good move. I think the options market implied a move if I am not mistaken and I might be, up to 850.00 by the end of the day on Friday, sometime between when they reported earnings and now. So that hasn’t quite happened but it came pretty close.

The reason I wanted to point to this is, that this is what has been happening with stocks, the ones that run, they run only to a certain point, and then wham, they get hit by selling. We definitely saw this at the open. The stock runs up but then by 10:30, the first hour, this was pretty much done.

And then the selling took place, and this is really what governed the action, right there. You get the big move, another big move here, and a big move, and then after that, that’s all she wrote, and then it’s been down ever since.

What my suggestion to you would be unless you are holding this on a long-term position or something, I don’t know why you would, but I don’t get a vote, I would be selling this right now, I would be selling into strength. If you say, I can’t do that, okay, well, sell half, sell a quarter, something, sell a share, but take some kind of profits.

After the kind of move, this had yesterday the stock is actually giving you a gift in that it looks like it is going to close about flat. Today it wouldn’t surprise me if it was 815.00. We’ve got about 13-minutes to go until the close. And these types of things tend to fall right on the even figure, whether it’s 815.00, 810.00, 820.00, or something like that, but they generally fall right on an even figure.

Another stock, just real quick is, American Express ( NYSE: AXP ), the same type of dynamic of selling into strength. The stock gaps up on good earnings, and immediately sellers hit this thing. This is a 5-minute bar chart, the first 5-minutes that was it and after that, it’s all downhill. And if you bought at the open you bought a loser of 3.75 percent from where it is right now.

And that is why it is not typically a good idea to buy gaps at the open when you’ve got a pretty big gap. If it is just a runaway gap from consolidation or something, that’s another story. But the way this is ( NYSE: AXP ) and the way this is ( NASDAQ: TSLA ), that’s just the market. So respect the market that you have rather than trade the one that you wish you had.

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