Intermediate Term Buy Signal: TSLA (625) Option: Feb 21st $700C (12.00) The Intermediate Term Trend Model has now joined the Long Term Buy Signal (Dec 7th @ $335) and the latest Short-Term Buy Signal (Jan 27 @ $555), with its fourth Intermediate Term Buy Signal since Dec 9th. The gap-up in price resulting from the 4th quarter earnings report should have no effect on the efficacy of the signal, good or bad. It is has as strong a likelihood of being successful as if it was triggered at a price $100 lower. To put these Intermediate Term Trades into perspective, above is a chart with all of the TSLA Intermediate Term Buy Signals generated since the the Dec 7th publication of, "Game Changer - Our #1 Stock Pick of 2020." Also illustrated by this chart is how setting stops is so problematic. The Intermediate Term Buy Signal on Dec 9th (not the same as the Long Term Buy described in the Dec 7th "Game Changer") was stopped out using our trailing stop on December 31st for a gain of 310%. What would have it done without a stop, or a much looser stop? At the December 17th expiration TSLA was $100 higher than that stop price, with the calls expiring for about a 1,000% gain. Problematic to say the least.
