One thing I know about this time of the year is that whipsaws thrive.
We call it Whipsaw Hunting Season.
The lack of liquidity, and lack of interest due to other life priorities, creates over-extended and exaggerated moves that otherwise would not be allowed to occur under normal supply and demand conditions.
But since the b-squads are on the desks, you regularly get failed moves this time of the year that result in very fast moves in the opposite direction.
For some great examples see $GDX in December 2016 and check out $TLT in December 2013, among many others.
These were nasty failed moves that ripped the short sellers’ faces off into the new year.
We see these sorts of moves born around this time every single season. It’s perfectly normal market (human) behavior.
So as we go hunting this year, Tesla really stands out as a potentially great candidate.
For something like this, I think it’s even more important to zoom out and get some perspective on where it’s come from.
Here’s $TSLA and its extensions dating back to the 2014-2017 correction:
The 120 price represents a big level, as you can see here.
But maybe even more important is the retracement from the absolute low in 2019 to the highs in early 2021.
That’s where we are today, or just below it to be more precise.
Using a 14-day RSI to define momentum, Tesla has never been this oversold in its entire history.
Also, it’s important to notice that the most miserable people on the internet can’t stop tweeting about it.
So is this something you want to be short?
This time of the year?
But the way I learned it is that Bottom fishing can be very hazardous to your wealth.
So we’d rather own it on the way up. I think 122 is that confirmation. We only want to be long $TSLA if it’s above that. Otherwise, it remains a no touch.
The targets are listed on our Trade Ideas page and our NEW Rangefinder App. Premium Members can find all the details there.
Please let me know if you still have not set up your Rangefinder App. Email me or call Mary and we’ll get you access +1 (323) 421-7910
So you tell me.
Do you agree?
How do you feel about the setup?
Am I crazy?
Or would it be crazy to ignore it?
Gold to $5000/oz
Are you ready for Gold to reach $5000/oz or maybe a lot higher than that?
Most people are not.
They think I’m crazy for even suggesting such a thing.
The past decade or so has eradicated all the gold bugs that were in their glory throughout the 2000s.
There’s a time and a place for everything.
And the weight-of-the-evidence is pointing to now being that time.
I put together an entire report about it and you can download it here: Gold to $5K Report