We were looking for the up move since Nov. 8th's "Chartology: Tesla Getting Near a Bounce (TSLA)" defining the target with the 19th's "UPDATED--By Elon Musk: "The Mission of Tesla"":
Pulling a number out of one's backside, $160 as a target...with the stock having closed that day at $126.09. There was more to the choice of the number but long time readers have figured out this is not the place to come to for 30-page 'Investment Theses".
The next day pre-market we posted "Tesla and the Barclays Downgrade (TSLA)":
That's just perfect. Wait patiently for signs of a bottom and finally make the formal buy rec last night* at $126.So there you are.
Have BARC junior analyst come out with the downgrade and I'm right back to 2009:
Thoughts on Markets, Investing and Life
**Great. Here I am calling for a midweek pop in the market and Dow futures indicate down 52.
Will this thwart my plans for world domination? In the words of Jimmy James (News Radio)...Mr. James:...The stock is down $6.27 at $119.82, yesterday's low print was $119.22. A solid double-bottom would be an undercut of yesterday's low either today or tomorrow morning to get that Abandon-hope-all-ye-who-enter-here vibe and then onwards to glory.
"The original title of this book was 'Jimmy James, Capitalist Lion Tamer' but I see now that it's... 'Jimmy James, Macho Business Donkey Wrestler'...
Or something.
That 2009 call worked out but markets are easier than stocks, no death car fire factor to deal with, for example. Yesterday's pre-market low was $115.60.
Here's more on the downgrade at Forbes.
Jimmy: Be careful, Beth, because the stock market can be a cruel mistress.
Beth: Well, so can I, but that's not how I want to make my money any more.
And now, with the well thought out plan of a late start to the day, we see the stock up another $7.28 pre-market while I get the chance to look like a genius before having to go into a meeting and explain why I thought (and publicly stated) that after hitting $160 the stock would head for the series of up-gaps in the $100 range.
Great.
While I'm away here's something to chew on from Global Market Monitor (yesterday):
Tesla’s Torque
Check out Tesla’s (TSLA) big move today.
Today’s price action triggered a nice cup/handle setup and the stock is now in the process of filling the November 6th gap down. Further follow through increases the probability the measured move target of $199.90 will be acquired.
The technicals are confirming positive fundamental news. We think the move has legs and bought some today. Could be wrong and always with a stop.
(click here if chart is not observable)Oddly enough our last couple posts on cup-and-handle formations were about Mr. Musk's other company, Solar City:
Jan. 9
Chartology: Elon Musk's SolarCity is Breaking Out of a Cup-and-Handle (SCTY)
...The cup-and-handle is one of the most constructive chart patterns and since Bill O'Neill (founder, Investors' Business Daily) popularized the set-up, one of the rarest. The moves after the breakout can range from 25 to 1000% but as he advises, don't chase. If it pulls back a bit, great. If it falls below the breakout line: sell....Jan. 14
Solar City Stock Gets Hammered as Researcher Notes SCTY Took 32% Of 2013 3Q US PV Residential Market (SCTY)
