More than mid-way thru the trading day and the indexes remain in a boring narrow channel, continuing the trend of the week. There’s really not much to say other than the longer SPX stays up here the better it is. Bears have until about this time tomorrow to have forced a pullback below 1,670 and if it doesn’t happen by then 1,700 is the likely destination. With the banks not breaking the uptrend, and YHOO strutting higher, the next big report to move markets is likely GOOG (after hours on Thursday).
There’s been very low volatility in the market but one stock that has been anything but is TSLA. After a 15% drubbing yesterday and near 20% 2 day pullback from its all time high, TSLA is rebounding to the tune 7% today. In addition, TSLA is holding up above $115 and within striking distance of its hod ($118.49 as of 1:21). When TSLA has been able to stay towards the top end of its 10:00-11:00 range (like its doing today) and hold that candle’s low, its usually had a bullish move the last 2 hours of the day. That’s something to keep an eye.
Remember, TSLA was down 7% yesterday and likely kept a lot of people out of the short trade for fear they had “already missed the move,” the opposite could be true today. Up 7% today most are likely thinking they missed the long trade on TSLA. While I do believe the best move has been made, I wouldn’t be surprised at all to see TSLA up 10% or more by the time the day is done. $118.88 is the midpoint of TSLA’s volatile range on the week so above that level and a move beyond $120 is in play. Below that with a break back below $115 and the $110-$112.50 area can be retested on the support side.
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