TSLA Update After Hitting Rob’s Target And Market Update

Welcome back! This is going to be a little bit brief with my voice but I wanted to get a video out based on two different subjects: TSLA and the market as a whole.

The NASDAQ was extraordinarily impressive with its rallying today. In fact, we had another situation where the sells didn’t sell and some negative divergences. The indicators were coming down and the price was going up, which should happen. Instead it turned around and gave another buy signal. There’s a real nice continuation from the area that we talked about late last week in a video. As we talk about the market right now, the DAX is not overly impressive yet. We have to get above that 13200 area to get super excited about that. Anything above 6350 I’m going to be very bullish on the NASDAQ.

When I start seeing these other markets get above that 23500 area, I’ll be very bullish. As far as the Russell, I’m not really trading it at the moment. I’m focusing on some other instruments. But, the 1490/1495 area or higher, I’ll be very bullish.

On the S&P, I want to get back above 2590. Those are a couple of key areas that I’m watching. As long as I’m at or above those levels, I’m going to be talking about the possibility of runaway markets. I’ll be very aggressive on the long-side.

On the short-side, with the markets the way they are with all this rising support. You’re not getting the long-term shorts. These markets have quick pop downs and those happen to be buy opportunities. I’m really going to be focusing on primarily the long-side. If tomorrow ends up being a short-term short day, I’ll look to the other indicies like crude oil below 55 or above 56. Remember we moved over to the F contract in 2018. If we get below 55 or above 56, I’ll be looking at that for potential longs or shorts.

A few weeks ago I talked to you about TSLA. TSLA took this nose dive. The reason why this is a big deal or unusual is I don’t look to catch a falling knife-type scenario. If you recall, we’ve been talking about this. We had the weekly chart coming up here so we had long-term support coming up at $300. Plus we had $300 round number support/resistance. You also had multiple gaps. It really had a chance to exhaust itself into this round number daily support number but also weekly support as well. From my perspective, this is one of the few times I felt that going long at the $300 level made sense with a target up to this area. That was a pretty safe bet from my perspective. That put the risk/reward well within limits. 295 was the stop loss. The reward to risk was at least 3:1. Potentailly 4:1 if it came all the way back up to some of the key falling resistance, which was a potential target. Sure enough, we banged into that target today. Over the last few weeks, that target has been moving down. We hit it right around the 318 level. That trade is done from my perspective. It could not go higher. There’s a lot of resistance coming down on top of us. At this point, to get into long-side trades, I’d rather wait to get into the 340 area and reevaluate for fresh longs where there’s room to grow. That trade was an unusual trade. I wanted to close the loophole on that. It finally hit the moving target as of today and that did yield 3.5x profit opportunity if someone would have bought it at $300.

Have a great night. I’ll look forward to seeing you in the Live Trading Room tomorrow morning or in the nightly videos.

To learn more about Rob Hoffman Trader visit www.becomeabettertrader.com!

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