#$tsla

I got two belated Christmas gifts from the universe today.

First, I got some promising news on the professional front.

Second, I’m finally free from my regrets over selling all my Tesla stock right before the split. Better too soon than too late!

I hope everyone got something nice over the holidays.

Wishing everyone* the best for 2023!

Tesla, $TSLA, comes into the week at resistance and just under the 200 day SMA. This is at the top of a range between that 200 day SMA and the 88.6% retracement of the run higher from August 2024 to the top in December. The RSI is rising into the bullish zone on this move with the MACD crossed up and about to turn positive. There is resistance at 288 and 300 then 310 and 330 before 346 and 360. Support lower is at 283 and 277 then 273. Short interest is low at 2.9%. The stock does not pay a dividend.

The company is expected to report earnings next on July 21st. The May options chain has big open interest on the put side at 300 then every $10 strike lower down to 250. On the call side it is biggest at 260 then 300. The June chain has biggest open interest at the 300 then 250 and 240 put strikes and at 300 then 260 on the call side. The July chain has big open interest at the 300 put then it builds from 270 to a peak at 240. On the call side it is biggest at 300. Finally, the August chain has open interest spread from 340 to below 230 on the put side but large and focused at 290 on the call side.

Trade Idea 1: Buy the stock on a move over 288 with a stop at 276.

Trade Idea 2: Buy the stock on a move over 288 and add a June 280/250 Put Spread ($$11.95) while selling the June 330 Calls ($12.60).

Trade Idea 3: Buy the June/July 300 Call Calendar ($6.95) while selling the June 225 Puts ($6.70).

Trade Idea 4: Buy the August 220/290/330 Call Spread Risk Reversal ($2.25).

If you like what you see sign up for more ideas and deeper analysis using this Get Premium link.   

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday that saw with just 3 trading days left in April, equity markets showed signs that the bottom might be in for this correction.

Elsewhere look for Gold to continue to digest its historic move higher while Crude Oil consolidates a possible new downtrend under support. The US Dollar Index sets up for a reversal to the upside while US Treasuries consolidate the downtrend. The Shanghai Composite looks to continue to consolidate in a tight range while Emerging Markets are poised for more upside in broad consolidation.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Aflac, Ticker: $AFL

Aflac, $AFL, comes into the week pulling back to the 50 day SMA. It has a RSI falling and a MACD dropping but positive. Look for a reversal to participate…..

Amazon, Ticker: $AMZN

Amazon, $AMZN, comes into the week breaking short term resistance. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…..

Antero Resources, Ticker: $AR

Antero Resources, $AR, comes into the week rising off a low. It has a RSI moving higher with the MACD about to cross up. Look for continuation to participate…..

Prudential Financial, Ticker: $PRU

Prudential Financial, $PRU, comes into the week pulling back from a top. it has a RSI that is overbought with the MACD positive. look for continuation to participate…..

Tesla, Ticker: $TSLA

Tesla, $TSLA, comes into the week pressing at resistance. It has a RSI in the bullish zone with the MACD positive. Look for a move higher to participate…..

Use this link to get special Holiday Sale Pricing!

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the December FOMC meeting and Quadruple Witching in the books, saw equity markets post another stellar week as they head into the last full week of the year.

Elsewhere look for Gold to continue higher while Crude Oil continues to trend lower. The US Dollar Index continues to drift to the downside while US Treasuries continue in their short term uptrend. The Shanghai Composite looks to continue the trend lower while Emerging Markets possibly break resistance to the upside.

Good afternoon, traders. After a harsh reaction to the FOMC meeting, the bears are getting even more out of this bear flag: Continue reading Untitled

Good afternoon, traders. The S&P 500 has made what I like call a “bow tie” pattern: Continue reading Untitled

In this weekend’s newsletter, I will discuss a handful of things and I few things I would hope to see with the S&P 500 coming up soon and why. First, let’s review the general structure of what’s becoming a slop fest up at these highs. At yesterday’s open, we could see what looked like a bull flag, from which we then fell, and in doing so, we broke the bear [sic] minimum of up trend lines. And…

Good afternoon, traders. We have some interesting developments. Today, the S&P 500 took a break from its relentless bid and, at the open, gapped to a point around which we could generate a bull flag: Continue reading Untitled