Bonjour à tout le monde!

 

Enough negativity with ALK and ASGN, I'm going to look into TSLA now, one of my flagged stocks.

 

Fundamentally Tesla is hard to crunch just looking at the IBD data as it's scant at the moment. It seems the bulk of the 96 CR is due to its technical strength (note EPS and SMR ratings are 59 and D, respectively).

 

However, I am a big Elon Musk fan, especially SpaceX! This company will take over the commercial space launch industry in the USA and forwards for quite a while. I cannot wait until it goes public and forms that first juicy base!

 

Alas for now, if you want to invest in Elon, Tesla is the place to be. I think he has the right philosophy in engineering large scale projects (read his Wired interview online), and I'm confident enough working in aircraft fly-by-wire to make this kind of assessment. He's more worried about execution than meeting dates and marketing goals. Also he works along with everyone else in his own cube, so he doesn't only have a superficial view of his company. The benefit here is avoiding situations which always ends up in executives making handshake deals on schedule and cost without any basis in engineering/project judgment. He seems like a guy that runs on honesty and conviction.

 

Products

We all have seen the Roadster sell well, the model S came out last year and sold a hefty amount of units in Q1 this year (4900 units), which seemed to be the catalyst for the stock's recent move.

They will introduce an SUV in 2014 called the model X as well as the next gen Roadster. If sales keep up, this is looking pretty good!

 

Now to the technicals... 

So the hope is here that for an 2nd entry point into this stock to emerge after its amazing run the past couple of months... in fact it's more than doubled in this time-frame. 

 

Could this be the genesis of a high tight flag? The market is due for at least a minor pull back, enough time to create the 15-20% consolidation on hopefully decreasing volume, thus forming the flag. It has already corrected from a high of 97.12 to a low of 85.28, or ~13 %.

 

Time will only tell, and I'm using the word 'hope' a lot, but all that means is waiting in the bush like a velociraptor waiting to ambush its tasty prey.

 

UPDATE:

Moved stop to 115 as I think all the weak holders are out since the skydive to the 10 week on 7.16. Luckily a trampoline was present as I have no hard stops on this stock due to soon to be ex-broker. I usually put a trailing 8% stop, but more volatile stocks need more room here. 3x ATR is almost 20$ but I think support has been re-established on the 20 day until at least the 3xATR matches my 115 stop.  I also want to protect at least 10$/share of profit.

Up 17.33% since going in @114.06 on July 1st.