TSLA Update From Previous Video And Where The Trades Are Coming From Right Now

Welcome back everyone!

If you have been following along with my videos you would know that I said this band would be major support on Tesla.  You have two very long term support levels coming in here.  You will see that most days we held to that area.  We did dip below it.  However, we opened and closed in proximity of that key support.  That is still holding true here.  We actually bounced right off here.  This would be a great place, from a volatility perspective, to buy calls or buying the underlying stock for a very short term trade.  I wouldn’t want to sell puts in this case because of the undefined risk.  There is also volatility associated with this instrument as well.  That could make things go from bad to worse.

Trailing right behind here sounds great to me because we have a high stochastic coming back into play.  We don’t want this to stop, roll over, and push back down through here.  We did put in a short term bottom.  We fired off a nice break out buy with a cyan dot and a green bar this morning.  It followed through very nicely for several dollars as you can see.  Even with the spreads that could be around 40 cents, it still managed to be one heck of an opportunity for those trading along with it.

Our strategy from last night was to look for break out/ break downs from the overall market.  I said that I wanted to watch the highs and lows.  The DAX broke out in very early the morning European session.  When it broke above that level it spiked.  It ultimately ended up coming back down.  The rest of the Stock Indices never got above their highs.  The NASDAQ did get above the high and it led to some short term opportunities long side.  If you were in the trading room this morning you saw multiple breakout buy signals early in the morning.

All of a sudden some sell signals started coming up.  It failed a buy attempt.  We never did get back to a green dot, green bar.   We had a green dot, red bar.  We broke right back down below that.  We fired off more sell signals.  People kept asking about buying the dip.  I said “no way”.  After it broke the 570000 level it died on the vine.  This was after the news came out regarding Donald Trump Jr.  That is when they released the emails.  People wanted to see if there was any substance there.  This caused short term pull backs it the markets until it recaptured its thoughts.

People who were trying to buy dips thinking that it was going to come back were disappointed.  That led to the markets pushing down.   I told you guys in last night’s videos that if it were to break below the lows there could be more selling.  It turned out that both sides of the fence were an option in the instruments.

I am done at this point with around 30 minutes left in the day.  I am going to look to see if we can push above these highs again tomorrow.  I would really like to break Monday’s highs as well.  I will look for continuations on the NASDAQ, as long as we stay above the 570000 level.  I would like to get above the IRBs as well for longs.  If we can break through the IRB buys down here that could lead to some great selling.  These are the same exact strategies I used today to make money.  I will use them again tomorrow.

Those are the key strategies and don’t forget what I said about Telsa.  I look forward to seeing everyone in the Live Trading Room or in tomorrow night’s videos.

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