Although the news today is about Elon Musk buying 9.2% of TWTR, what concerns us most in this service is that we identified two corrective channels and then bought the respective upside breakouts, both of which have now generated 200% returns. Since Dec 2019 buying the breakout of a corrective retracement channel has served our trading well. A new Buy Signal will be generated with the next such breakout, but shares first need to experience a price correction - likely but no guarantee. There are a lot of catalysts in the months ahead, earnings, stock split, Cybertruck, etc. Absent a short-term price correction our next TSLA trade will be to replace the Sep 2022 call later this summer with a new expiration, and/or rolling up one or both of the above positions into further out-of-the-money strikes. Otherwise, the only action to take is to leave well enough alone and let Elon do all of the heavy lifting.
