Ford (F) and General Motors (GM) are back in cycle mode, providing reliable trend cycles for short-term option trading. We can start trading them with the next signal which as you can see in their charts below, will be Sells. F - Trend Model Signals GM - Trend Model Signals Each signal is good for close to or exceeding triple digit gains on 6-10 week just out of the money options. That return is there during the term of the signal, but not always left at the time of the reversing signal, so the trades need to be managed once the options exceed 50% gains. I'll track them using a 50% trailing stop so as to not let decent profits slip away as the cycles reverse. Had we been trading these, calls from the most recent F Buy (Jan 5) would be up about 50%, but it did reach +100% on Friday, Jan 13. For GM, the most recent Buy (Jan 6) calls would also have doubled the first week, and now are up about half that. The next signals for both will be Sells and you can see about where those Sell levels are on the charts, i.e., breaks under the now blue trend cycle lines. TSLA We made a lot of money trading TSLA's Trend Model in 2019-2021. It may be the best way of trading it at least short-term going into 2023. The last TSLA Trend Model Signal was a Buy on Jan 6 @ $131.49 At the time of the TSLA Trend Model Buy the Feb 17th $140C was trading at about $3.50 (chart below). It closed at $40.55 on Friday and is currently trading at $33.06. Had we taken that signal I would have preferred going out much further in time, but, for comparison sake the paltry gains in F and GM pale in comparison. As with F and GM, the next TSLA Trend Signal will be a Sell and I'll be posting it real time. For now, the Trend Model Sell level is a close below about $135 (see blue trend lines on chart). Clearly, this is a model we need to be trading, one way or another...or both. TSLA Feb 17, 2023 $140C - January 2023 Performance
