Daily Update: NanoString (NSTG) and Tesla (TSLA)


Monday was either a dip in an ongoing YTD rally, or, the beginning of a leg down to at least work off the extreme bullishness emanating out of that rally. As of mid-day today, it's an even bet. No new trade signals. 

NanoString Technologies (NSTG)

NanoString Technologies (NSTG) reports earnings after the close of trading on March 7th. Current earnings momentum is less important here than the science and product development. Looking back at the past year's stock price movement just after earnings reveals an encouraging pattern for Longs. 

Earnings Date: March 7, 2018

Price next 10 days: $6.54---->$7.40 (+13%)

Earnings Date: May 8, 2018

Price next 10 days: $9.95----> $13.19 (+33%)

Earnings Date: August 7, 2018

Price next 10 days: $12.28---->$14.62 (+19%)

Earnings date: November 8, 2018

Price next 10 days: $15.09---->$17.48 (+16%) 

Note also that the price didn't gap-up the day after earnings in any of those rises, i.e., price movement wasn't emotional, it was a deliberate and rational reaction by the marketplace (mostly institutions) to the previous quarter results and future projected growth. 

Tesla Motors (TSLA) 

Tesla continues to be whacked by news headlines, reflecting just how misunderstood the company is by mainstream Wall Street. To value this company based upon traditional fundamental analysis is akin to pinning Tom Brady's salary to his SAT score. We don't trade the TSLA trend signals any more, but only because its options are way too expensive for our purposes. June at-the-money calls/puts are $3,500 each. Even if we did, the last two trend signals were both Sells, one at $335 on January 15th and another at $298 yesterday. So even at the Intermediate Term level the trend remains down and not allowing an entry Long.

A huge institutional advocate of TSLA and its story is Ark Invest (discussed here). Ark has been buying TSLA with both hands every time it dips under $300 (I monitor all of Ark's buys/sells daily). What do they know? Under the long-term TSLA chart below is a 30-minute interview by Ark Invest's CEO Cathrine Wood with Elon Musk. They discuss the mispricing of Tesla shares and hints at what the future holds for the company in view of its advanced AI (self-driving) and its leading-edge battery technology. If you can't watch it now, save it for later. We will be all over TSLA when its trend reverses back up.