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With a confluence of good news, Tesla (NASDAQ: TSLA) has been one of my best stock investments to date.

The shares hit a record high after beating estimates for vehicle deliveries in the 4th quarter, and Tesla’s Chinese Gigafactory has started delivering its first cars.

 

Looking at this weekly chart, we can see that the general pattern is a trending trading range.

From 2014 to 2017, the stock traded between $180 and $280, which was around a $100 range.

From 2017 to 2019, the stock traded between $250 and $380, which was around a $130 range. There was a brief period where is also dipped down back to test the prior range bottom of $180.

Depending on where you bought, your returns could range from 80% to 140%, which is pretty awesome for your portfolio.

And now that prices have broke above the $400 level, I am expecting price to stabilise and form a new trading range.

At this point, it is hard to tell where the boundaries of the range is going to be, but if you are looking to buy, then it is best to buy near the bottom of the range once it gets established.

I will continue to monitor this stock since it is in my portfolio, and post any new updates or buying opportunities in my free Telegram channel.

See you on the inside!

Tesla recently posted a cash balance increase to $5.3 billion and reported a profit of $1.86 per share, shattering analyst expectations for a loss of 42 cents per share.

Elon Musk promised a 2020 rollout of a cheaper SUV and more self-driving technology to stay ahead of larger rivals rushing into the premium electric vehicle market he created.

 

 

Looking at the chart of Tesla, we can see that it traded between the range of $250-$390 for almost 2 years (mid 2017 to mid 2019), before breaking to test a major support level at $180.

From there, it has made a strong recovery, with a whooping 70% gain from its June 2019 bottom.

Now, prices are close to $300, and it looks poised to test the highs of $390 again.

I will continue to hold and look for opportunities to accumulate more again.

 

If you’ve been reading the news, you will know the US stock market is at an all-time high, and quite possibly one of the longest bull runs in history. According to Zerohedge, this is the longest bull run since the great pyramid boom of 2580 B.C.

Article: https://www.zerohedge.com/news/2018-08-22/longest-bull-market-great-pyramid-boom-2580-bc

Also, the US economy seems to be doing pretty well, especially with the booming tech sector, and even the banks are hitting record profits.

Article: https://www.zerohedge.com/news/2018-08-23/us-bank-profits-hit-record-60-billion-q2

But I think the big question on everyone’s mind is this:

 

Is this a Good Time to buy Now?

If you believe that markets follow the boom and bust cycle, such as the 10-year cycle, you will know that we are “overdue” for a big correction. Logic dictates that we aim to buy after a big crash to get the best value (and most potential upside), hence buying at the all-time highs might not seem like a good idea to many people.

 

If you look at the current chart of the S&P 500, you will see that the price is just testing the prior highs, which means that it is at a very critical point.

If prices get rejected at this level, it could end up forming a double top reversal pattern, which is very bearish and could see a decline to the 2280 levels.

For the strong uptrend to continue, prices need to confidently break above the prior highs and stay above that level.

 

What Could Go Wrong?

With escalating political tensions with many countries, and the trade war with China, a confluence of negative factors could adversely affect the fundamentals of the US economy.

Article: https://www.zerohedge.com/news/2018-08-23/trade-war-escalates-us-china-slap-each-other-fresh-16-bn-tariffs

With the risks in mind, I will not be aggressively accumulating positions at this time, and will have to focus more selectively on key sectors.

 

Later this evening, I will be sharing about the market outlook for indices, stocks, forex and Gold, and I will be explaining these charts in greater detail. See you there!
https://www.eventbrite.sg/e/the-7-best-kept-secrets-of-professional-traders-tickets-11390785145?ref=ecal

BA scan 060514 global markets

^gspc 060514 s&p 500

BA scan 060514 sgx sectors

^sti 060514 straits times index

Last month was quite an exciting month, with the markets lying quietly for the large part, before exploding upwards towards the end of the month. This could have been due to window dressing, or the seasonality factor. https://synapsetrading.com/2011/06/market-seasonality-and-statistics/

I have taken quite a bit of profits from the recent big moves, and I am now holding in mainly in cash for the next big opportunity, seeing how the STI is nearing one of the major TP zones. The US market, on the other hand, is once again breaking to new highs, and this move could easily continue for the next few weeks.

Near the start of the strong run on the 26th of March, I posted some SCREAMING BUYS in the Synapse Network forum (see below), and all of these have surged up magnificently since the posting.   And I post these updates EVERY SINGLE DAY!

portfolio updates march 2014

^gspc 030414 S&P500

screenshot 040414 synapse network

^sti 030414 straits times index