Special Alert: TSLA, The Trans Index and The Dow

TSLA

TSLA is on the verge of breaking a very important trendline on its long term weekly price chart:

A weekly close below the blue trend signal line a $287.62 constitutes a long term sell signal with no real support until the $180-200 price lows from late 2016. If you have $3K bucks doing nothing, the Jun $300 puts are trading at about $30, or $3,000 per put. If TSLA is trading at or below $200 at Jun expiration those puts are worth $100 each for a +200% gain. Break-even is $270. 

The Dow

This longer term Dow chart puts today's 400+ point rally into perspective. Outside the slim chance of a "double bottom", this is a bearish, bearish chart.

The Transports

Long Term Transportation Average

A lot was being written this weekend of the consequences of Dow Theory Sell signal. Every element is in place but for a Transportation Average close below $10,136, about 150 points lower.  A lot of institutional money uses the Dow Theory (quite successfully) to allocate assets. A break of that level should see a wave of selling. 

Next full update: Tuesday