Short-Term: Earnings Tesla reports quarterly earnings on Wednesday after the close. Depending on how the stock reacts on Thursday, not on the earnings itself, but how the stock reacts to the earnings, there may be an aggressive short term trade opportunity. If there is a sharp decline in shares, something north of 5-7% drop, I will look at adding calls for a short term trade. A knee-jerk downside thrust would be akin to a black Friday sale at Best Buy. Get there early for a 72 inch smart TV for $99, one to a customer until gone. Another way of saying buy some calls being panic sold, ready to exit them in a few days or weeks as TSLA rebounds to where it was just before earnings. If this kind of decline occurs, I'll post some call ideas Thursday morning. Be sure to check the PRO site about an hour after Thursday's open for any fresh Alerts. Intermediate Term: The TSLA Wedge From the intermediate term, TSLA is tracing out one of its most profitable pattern recognition set-ups, an intermediate term wedge. Since late 2019 several break-outs above the top descending trend lines have always led to legs up to new all time highs (blue arrows). If TSLA breaks above that trend line we will be adding calls for a relatively quick run to new highs ($1,243) and beyond. I've added the long-term Fibonacci extension projections for a "best case scenario" perspective.
