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Just for some perspective, just Tuesday we closed at 203.70, so we are up less than 4% from that, and in the same "channel". Which is to say, we should probably look at this as a continuing multi-day rally and not a one-day pop. YESTERDAY was the anomaly
, going down so much for no reason:
A nicely written bull case on SA: Tesla the perfect earnings trade and the company that's set to keep running.
Bofa hasnt updated their targets yet but Dougherty has
Tesla PT Raised to $325 at Dougherty & Co. vs Street Avg $176
Feb. 20 -- Tesla shrs likely to continue pricing in future successes as Street starts to expect co. to achieve 5% market share in target categories, Dougherty & Co.analyst Andrea James writes in note.
* Giga factory to be unveiled next week likely “further
disrupts the auto industry in a major way,” retires risk
around co’s ability to scale
* May “reasonably” generate 2020 EPS $19, Street est. $17.31
* Reiterates buy, PT $325 from $200
* TSLA has 6 buys, 7 holds, 3 sells w/ avg PT $176
* TSLA up as much as 11% to record after 4Q EPS beat, 2014 deliveries forecast tops est
* NOTE: July 17, Dougherty raised TSLA PT to $200 when shrs traded at ~$109, said “ultimately” worth $300 at factory’s
max capacity
Even Barron's couldn't help themselves, and said nice things today. I'm pretty sure that's a first: Tesla Motors: Up, Up and Away - Stocks To Watch - Barrons.com
More and more shorts will pile in at these levels which is what I suspect we are seeing right now. That and many longs may be asking... how much is too much? We'll really need to wait and see what's going on with this Giga factory. The street seems to be craving for this-- hence the number of questions on the call yesterday. They want to gauge the potential future earnings on this and potential requirements.
Causalien
Prime 8 ball Oracle
Looks like we are closing the gap today. I'd rather it is done now so we don't have to revisit this gap in the future.
*edit: Nope intra day down channel broken. Sigh.. and I've just grown fond of whoever was doing the short. Such discipline and pattern.
*edit: Nope intra day down channel broken. Sigh.. and I've just grown fond of whoever was doing the short. Such discipline and pattern.
Causalien
Prime 8 ball Oracle
No way it'll go to 105 or 106.
The gap did close though. So you gotta admire Kass's balls to double down on his previous $206 short at $217. I get to observe what Kass's shorting pattern look like. That's all I wanted from today. Now that we've hit the gap and rebounded. I am going to bed.
AustinEV meant 205 or 206.
It does look like we might have hit the low of day at 206.
Would somebody mind explaining this gap business to me? It looks like the high of the day on Tuesday was 206, but we only went down as far as 206.27 today (so far). How close does the movement have to be before the gap is considered "closed"?
Causalien
Prime 8 ball Oracle
Right. I remember that I promised to explain gaps.
When you get a gap up you basically prevented a huge amount of order from being executed since the stock never go thorugh the activation price of those limit orders. In the old days before computers and in psychology. When you get a gap up or down, you deny a bunch of people from buying or selling at the price they want. Now they remember that gap and either think they should probably get out if they get a chance to have that price again, or they should probably buy in the steal if the price dropped to that level again.
Whatever causes a memory of a price have an effect as a resistance or support in a stock chart. Again, the more people who remember the price, the stronger it is. Hence the closing of a huge gap (as it prevents more orders from executing) has a larger base of stock traders who remember. The reason why this reasoning is correct is proven by the fact that people do not trade TA based on a market capitalization chart, which accounts for all the hidden share dilutions. It is the price level and only the price level that everyone sees that's important. Since we are not logical animals, but emotional ones.
In modern days. A gap prevents orders from executing and forms a backlog of order that are still at that price for whatever reason. Wherever there's a large order (or order wall as I like to use it), the price will be attracted to it magnetically because the bots wants to trade to that price. A large amount of order presents lots of fees and commissions in modern days. So, one must not leave easy profit on the table.
Of course the market continues to evolve. My theory is probably already a dinosaur nowadays since we are moving to a 70% HFT traded world. The algorithms have moved from just trading faster and generating fees to cannibalizing each other. I just trade gaps because it is something that every TA believes in and still has a higher % of being true than being false. So its effect is still in play. With TA, the more people who believes in a phenomenom, the more it is true. So until the day when 50% of the bot algorithms stopped taking into account of gaps, I will trade the gaps.
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FredTMC
Model S VIN #4925
So, we've filled the gap today (or close to it at $206).... Any thoughts on closing price today? Currently sitting at $210
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