Charts, Charts, Charts

by JDH on April 20, 2019

Today, lots of charts.

Tesla

Let’s start with Tesla:

Tesla had a good week, bouncing from $258 on April 15 to close the week at $273.  Is this stock out of the woods?

Nope.

The chart tells the story.

It is still in an obvious downtrend, and is still and excellent short candidate.  They aren’t selling cars, and this weekend, on Good Friday night, with the markets long closed, Tesla announces that it will be shrinking the board of directors from 11 to 7 people, because, you know, when you are doing this well, you don’t need advice from your board.  (I wouldn’t want to be on a board of a company that was about to go bankrupt either).

If you would like an alternate view, here is a completely delusional article by a Tesla fan boy, who thinks Tesla will rule the world.  Check back in a year and we will see who is correct.

Gold

Of more interest is gold.

This chart is also not great.  The uptrend line that started at $1,200 back in November was broken at the end of March.  Of greater worry is the very strong support at $1,275.51 which was touched on January 4, January 21, January 24, and then broken on April 16.  As I write this gold has inched back above $1,275, so it is not clear whether or not this support level has broken, but it is not looking good.  If it doesn’t hold this week, the next support levels are around $1,240, $1,210, and $1,200.

What to do?

If you want to roll the dice, buy gold.  This could be support.

A more prudent approach would be to place stink bids on the solid gold stocks you want to own, and accumulate on weakness, but also keep some cash handy.  My plan over the next month or two is to accumulate cash, and that’s what I’ve been doing.

Sell in May and go away, you know.

Pot Stocks

Finally, pot stocks.

Let’s start with Canopy Growth Corp, with the apt ticker symbol WEED.TO

It’s up significantly from the Christmas Eve bottom below $35, and had a big bounce on Friday, closing at just under $60.  It hasn’t broken to new highs, yet.

I’m holding.

Not buying, not selling.

My guess is that April 20 will see a nice bump for the pot stocks, because, you know, 4-20 is a big number in the pot world.  (You can Google it).

The RSI on this stock is 55, which is a good number to be buying, so it may have more pop left.

Longer term, I suspect the US pot stocks will outperform the Canadian ones, as they have not yet had their run, and as the US moves closer to full legalization.

Finally, my biggest cannabis holding, TGOD.TO, has had a rough time of it lately.  I did sell some earlier this month; will keep an eye on it to see where support lies.

Canada has had issues with the legal stuff.  Supply is limited, it’s very expensive, and the quality isn’t great.

So, if you want to use it, it’s easier to buy better quality stuff from “your guy”, which is less of an issue now because the stuff is sort-of legal, so the stigma of using it is reduced.  That hurts the legal producers in the short term, but may help them in the long term.

So, I’m holding.

And, raising cash.

That’s the plan.

See you next week.

 

 

Quick Hits

by JDH on April 13, 2019

Very busy today, so just some quick hits:

First, Tesla isn’t bankrupt, yet.  But they will be.  When the stock bounces up, buy puts.

Second, the pot stocks are showing some signs of life.  I began taking profits this week, and I plan to gradually sell my entire position before the end of the year, but we will see how it goes.

Gold is still looking good.

Finally, if you want an interesting play, try The Alkaline Water Company Inc. (WTER.V).  Interesting story, stock was down, bounced this week, probably still has some legs.  I have a small position.

Those are the quick hits.  I will be raising cash leading into “sell in May and go away”, so that’s the plan.

See you next week.

Thank You Tesla

April 6, 2019

Way to go, Elon. The stock was being pumped up ahead of production numbers, which were disastrous, causing a drop from a high of $296 on Wednesday to a low of almost $260 on Thursday.  Nice. My play was simple.  I hold puts, and on up days I buy more.  So, for example, if I […]

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Nothing to Report

March 30, 2019

I’ll save you some time today: I have nothing new to report, so there’s no point in continuing to read this rambling post. Tesla had a “good” week, bouncing from below $260 on Monday to close at almost $280 on Friday.  It could conceivably hit $295 this week, but as the chart shows, the trend […]

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Tesla: The End

March 23, 2019

Okay, perhaps it’s not exactly the end, but what do you see in this chart? A company on the rise? I see a company that is going in the wrong direction, fast.  Once Tesla hits $250 per share, which it may do as soon as this week (it’s dropped $10 in the last week), even […]

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3 Charts

March 16, 2019

Let’s start with Tesla, shall we? Tesla has strong support just above $240, and strong resistance at just under $390.  So, the question is, which resistance level gets tested first?  I’m betting it’s the lower one, and I will not be at all shocked if $240 is broken soon. If Tesla made gas cars I […]

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Update on Tesla and Pot Stocks

March 9, 2019

Today we discuss pot stocks, and a stock that is going to pot: Tesla. The chart seems clear to me.  From a high of $370 in December, Tesla touched $270 this week.  It does not take a charting expert to realize that a series of lower highs and lower lows is a down trend, Technically […]

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Tesla on the brink?

March 2, 2019

For those of us who held Tesla puts, Friday was a good day. After hitting $321 at the beginning of February, it touched $288 on February 26, bounced back to $320 on February 28, and then closed back in on $292 on March 1. Why? Fraud Boy Elon said that they would start selling a […]

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Yes, I’m Still Here

February 23, 2019

For the first time in a decade I missed posting last week.  I was very busy, and totally forgot.  Also, I had nothing to say. This week, I have three things to say: First, it is obvious that the DOW is at a critical resistance level. The pre-Christmas crash has been completely reversed, and over […]

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Hmmmm

February 9, 2019

Not much happened this week.  January was a great month, February has started with nothing remarkable to report. A quiet period can be followed by a bang, or a whimper. My guess is that we are catching our breath before another run higher.  Seems crazy given our level of debt, but that’s how this feels […]

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