Trade Update - TSLA



BotTrigger Trade Update: $TSLA so the negative divergence on TSLA played out. We saw 2 significant reversal days of back to back selling before earnings. Those were shotgun warnings. The post earnings reaction is telling. Glad we sold higher. This will come back up, but for now TSLA can expect to see lower in the near-term. We'll be looking to reenter on this name for sure. We would expect there to be strong support around the $240 - $220 area. A capitulation low of $200 would be max pain level. Could get there but we wouldn't bet on it. Tesla is in a new, higher trading range than last quarters trading range. The range last quarter was $178.19 - $287. So that's a $100 point range that occurred on scale. The new trading range this round could look similar but if history is any guide we may see a cyclical contraction period after extremely strong rallies. Remember that TSLA just rallied from a low of $178.19 to $287.39 which is more than 60% from the lows. Now it's time to retract and retrace some of that. These things don't just keep going up higher every month. Ebb & flow cycles. Long term higher. Near-term now under pressure.


Some of the greatest pearls shared by Jesse Livermore:

“Money is made by sitting, not trading.”

“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money everyday, as though they were working for regular wages.”

“Buy right, sit tight.”

“Nobody can catch all the fluctuations.”

“There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.”

“It takes time to make money.”

“Don’t give me timing, give me time.”