The Weekend Update just posted to the Blue Line Trading System subscribers is reminiscent of the update sent out in December, 2019, in which we went all-in on TSLA Jan 2021 LEAPS. The, "Game Changer," LEAPS eventually went off the board +10,500% and changed lives (I have the testimonials to prove it). Saturday's update also discussed a new paradigm and investment opportunity and its premise is just as game changing as its predecessors' from 2019. Accordingly, here it is, my holiday gift to AllAllan readers, in its entirety.
Best Holiday Wishes To All,
Allan
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Space X and Tesla: Opportunity Pending
"I do want to try to figure out some way for Tesla shareholders to participate in SpaceX. I’ve been giving a lot of thought to how to give people access to SpaceX stock.”
- Elon Musk at Tesla annual shareholders meeting
Taken at his word, this represents another and perhaps the single most persuasive argument for owning TSLA shares going forward. Consider anything that Elon Musk has, "been giving a lot of thought to," as a Buy, Buy, Buy...period. As SpaceX nears going public, expect TSLA shares to catch fire as a back door way to participate in the one of the most important IPO's of our lifetime. Owning calls in TSLA or TSLL, or even shares of TSLL, won't do the trick directly, that is, but insofar as benefitting from the share appreciation attributable to TSLA shares participating in the IPO, those two avenues of participation will do just fine, they just won't get in on the IPO. Do not be fooled by TSLA share price not being immediately affected by the recent SpaceX IPO headlines (although TSLA is up about 10% since the headlines started), as that time will come, meaning that for TSLA shares, the, "SpaceX Premium," is still ahead, i.e., Opportunity Pending.
Relevant Links
What a SpaceX IPO would mean for Tesla stock
SpaceX reportedly mulling IPO, eyeing largest of all time: report
Three Background Videos (watch, "Elon is all in," first)
TSLA - Weekly
Next breakout should be a biggie, catapulting $500-$600 as 2026 SpaceX IPO buzz boost shares of all companies involved, i.e., TSLA, RKLB, ASTS.
SpaceX & RKLB, ASTS
Both RKLB and ASTS have caught a bid in the shadow of SpaceX going public. Although not a direct play on SpaceX, they will certainly benefit from its IPO sentiment, which should be explosive, so to speak. Just this past week RKLB is up 20%, and up 50% since Thanksgiving. ASTS is also up about 50% since Thanksgiving with momentum continuing through this week.
RKLB
Both RKLB and ASTS are on recent breakouts, which means a dip is coming, then in true, "breakouts beget more breakouts," fashion, more price appreciation is on tap. Accordingly, my price triggers are just above previous highs and are shown on these charts. Some of our very best gains of the year came from this same methodology and if it ain't broke, well, you get the idea. Speaking of which, my computer was not really broke, but I replaced it anyway, eight years was just begging for something else to go wrong, that band-aid temporary fixes just wouldn't handle.
(Note to AllAllan: This computer reference refers back to a previous update, where I was offline for several hours due to power failure and that ultimately resolved itself by my upgrading to a new MacBook Air, retiring my MacBook Pro (2017) - victims (it and I) of planned obsolescence).
But I digress, note the B/O triggers on these two charts, they could become moving targets if the market corrects anymore than it did on Friday. In fact, I wouldn't mind not getting into these two until next year, sidestepping an overdue correction. However, true to the tenants of pattern recognition, if price exceeds the indicated levels, expect intermediate term out-of-the-money calls on both to be forthcoming, for inclusion in our Premium Option Portfolio going into the new year. More in, "Trading Options," below.
ASTS
Bottom Line
These are three longer-term ideas for accumulation and trading to the upside in 2026 using the same technical analysis tools that have captured 10 baggers in Call options in Gold and Silver throughout 2025. When the technicals (Breakouts) meet the fundamentals (story stocks) we have powerful combination of triggers that place us on the right side of major moves a burgeoning sector of the financial marketplace. These three space stocks, and I am including Tesla in this category, combine Aerospace, Artificial Intelligence, Energy and Robotics to be leaders in cutting edge technology and financial opportunity, as poignantly sung here, by Karen Carpenter, "We've Only Just Begun."
Trading Options On SpaceX & Friends
We are starting with a core position in TSLA (and/orTSLL) taken on Dec 4th:
Still alive and well*, from August 11th:
*To be rolled over to March expiration. Instructions to follow, next week.
We will be adding RKLB and ASTS, as well as any other names in this sector that present breakout patterns suitable for intermediate term positioning. Look to our future Updates and Trade Alerts for triggers for adding calls basis shorter-term breakouts. For now, RKLB will be a buy above $68 and ASTS a buy above $85. Look for a Special Update with specific call recommendations should those levels be reached.
SpaceX & Google
Google owns about 7% of SpaceX. The relationship involves a significant financial investment and a technology collaboration for Starlink internet service. A few weeks ago, Warren Buffett disclosed that Berkshire Hathaway made a significant, surprising move by taking a large stake in Google's parent company, Alphabet (GOOGL). Query: After years of avoiding big tech, why did Buffett finally see the light? Could it be the shine of the cosmos and an opportunity to acquire a backdoor interest in SpaceX and the future as Elon Musk sees it?
GOOGL
The Wave ii (circle) low was made just before Warren Buffett announced the Berkshire stake in Google, shares rose about 50 points in two weeks, but that may be just the beginning of a run to $400+. See: Karen Carpenter, above.
Let's add GOOGL to the "& Friends" trio, making a foursome (TSLA, RKLB, ASTS and GOOGL) and monitor the above bull flag for a potential breakout, above about $325-330 in the days-to-weeks ahead. Being in business with both Elon and Warren is something we could tell our grandchildren about.
GOOGL Feb Calls
Does this bull market have one more leg up coming? If so, GOOGL should lead the run.