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TSLA: Well one thing you can count on in this saga – it’s never boring! An absolute joke of a settlement for Elon if you ask me, paying a 20M fine after causing 100s of millions in collateral damage to both longs and shorts, but that’s the SEC for you. They literally encourage fraud with how laughable their settlements are. Also best part of the settlement is that he has to have all his tweets about Tesla reviewed by a parent before he sends them out. He got put in Tweeter Timeout. How cute. I digress, this one is going to be wild tomorrow. This “surprise settlement” over the weekend is going to have shorts on their heels in the am, as I imagine a good amount were short over the weekend as it was looking very doom and gloom into close. I’m hoping for a big gap and rush back towards 290s for the short there out of the open. I don’t expect any sustained move in either direction here until new production numbers and earnings come out which is still 5 weeks away. My thought for the trade tomorrow would be to fade sharp volatility. It’s a scalp idea that’ll probably yield multiple opportunities in both directions. Only rules for tomorrow would be: cut very quick if wrong, and no chasing (don’t buy strength, and don’t short weakness) and hang onto your seat.
NBEV: Know some people who are actually bullish on this, the thesis mainly being that their new beverage is somewhat legitimate and this name isn’t a threat to dilute too much in the near future, as they’ve already got a recent raise done. I don’t have much of an opinion on that and I’m skeptical of the legitimacy here, that said it’s nothing to step in front of if it does show strength, this market is pretty nuts right now. Would probably be more partial to a weak open long, as 5 is the obvious spot. So weak pre/open, look for curling action on a higher low above 5 and risk off that higher low for the long idea.
AMRN: Got some really good long trades off this one last week. At this point, it really should pull back some, whether the bigger picture move is higher or not. So I’m looking to flip short bias this week. In a perfect world, it opens strong again tomorrow and we get a rush on 18 and look for peaking/failed follow thru around there and start in after it puts in a higher low or two mid/high 17s.
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See you out there!
– D
Thanks Dante