Tesla-mania quite obviously has a grip on fad-dependent Wall Street, tracing out a parabolic rally that has drawn strength from a story that even widows and pensioners can love. The week’s Big News (out of MIT, no less) is that Tesla’s battery technology is way ahead of other carmakers’ — so much so that it may someday be possible to recharge a Tesla’s batteries in five minutes.
So felicitous have the headlines pertaining to Tesla been lately that one might think the company had hired one of those Hollywood PR firms that somehow gets America all jacked up over the latest Hollywood blockbuster. Anyway, our purpose here is not to argue with such insanity, but to provide accurate predictions and guidance for traders. In this case, judging from the ease with which the stock blew past a clear Hidden Pivot resistance at 142, we’ll lay odds that it will get to at least 168.23 (see inset) before DaBoyz need to refresh their story. (Tesla Discovers a Cure for Cancer’ ?) Accordingly, ‘camo’ traders should be looking to get long. Keep in mind that the scarier a trading vehicle acts, the easier it is to use camouflage tactics successfully.