All domestic trading markets will be closed Monday, Feb. 20th in observance of President's Day. The market is being led by Bitcoin and Tesla, two of the bloodiest casualties of 2022 and both of which have the look of "new bull markets." Only TSLA interests me here, because it has the technical and fundamental look it did in 2019 before its run from the (split adjusted) low 20's into the Nov 4, 2021 all time high at $414.50. TSLA - Long Term (Weekly) The look here is of a Primary Wave 3 in its earliest stages, about to put in a multi year impulse pattern well above its previous all time highs. For Intermediate Term traders we will look to enter on the first pull-back followed by breakout for which our trend model is especially well designed for longer-term option trades. At current price levels, that initial pull-back could be as low as $175 (38.2%) to $150 (61.8%), no doubt coinciding with a market-event to the downside. Cathie Wood's new (Jan 2023) five-year price target for the stock is between $600 and $1,600, depending on the rollout of Cybertruck and Robo-Taxi. She is probably low on both the low and high ends, but even considering $600 a conservative target, that's a 200% stock gain from current levels. As we saw in 2020-2021, that equates to over 10,000% on well positioned LEAPS as well as multiple 1,000% gains trading intermediate term trends. When we get TSLA right, or even mostly right, the payoff is enormous and it explains why TSLA gets so much of my trading energy and attention. There isn't a better stock we can be trading...or we would be. Below is an 240 minute trend model that has been very effective for shorter-term entries. We will be using it to trade around the first pullback and into our initial TSLA longer-term calls. A decline over the next week to under $200 provides this model with a set-up for a repeat entry Long.
