011. PIGGISH PLAY - Long Tesla (TSLA)How original is this?
How much do I care?
This stock is insane. I've never seen tape move so violently in an overbought state. It's the most bullish financial instrument that I've ever seen when trending. Right now, the chart is positioned in such a way that the next move up could be unprecedented in terms of dollar/share appreciation. Assuming a great earnings call next week (which I believe will be the strongest report posted to date), I truly believe it can pass 2800 by end of month.
The recent price action has been laughably bullish to the point where we can see the RAREST candlestick pattern known to mankind displayed on the DAILY timeframe. That pattern would be the "Three Stars in the South." For every 4 million daily candles, only 9 appear in this formation. On top of being the rarest candlestick pattern, it is also the most bullish.
Now let me get this straight: the most aggressively bullish tape has just completed the rarest and most bullish candlestick pattern on the daily timeframe. Hmm.
Even if they bomb their earnings report, the move into the announcement is reason enough to pull the trigger long tomorrow with contracts expiring next week. Yes, I know they are expensive as hell. My entire account currently consists entirely of three close-ish to the money TSLA calls expiring next Friday (7/24). That sounds crazy, right?
Perhaps it is, but I'm so thoroughly convinced of a move higher that if I am wrong and blank out my current account, I can accept that. The reason is that if I'm right, the amount of profit generated in one-week will be orders of magnitude higher than what I could return annually, even if I were to continuously trade breakouts at a high-level throughout the year.
The odds are good. The potential weekly payout is unprecedented. I feel sorry for the designated market maker that got randomly selected to handle this stock. (Not that sorry).
- Environmentally-Conscious Pig
NASDAQ:TSLA
