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Tesla And The Play Of The Week - An Easy Read.

Here is Telsa's five day chart. Can you see how it spiked to the upside on Friday morning before it tanked? Can you see how as the day progressed it dipped down to the support level of the $210.00 range? Here is its one day chart. Now this. Lucky in all this action are all those individuals who purchased one day Puts on Telsa in the first few minutes of trading. Look at how these Puts reacted. The lows of the day happened in the first few minutes of trading. Look at the pecentage gains. In the last example a $1.00 option went to $190.00 in one day. Catching one trade like this could make up for twenty bad trades. What's all this talk of Ai trading? Moves like this could blow up the exchanges if thousand of trading platforms could recognize this could happen. This was one of the best option trading opportunities of the decade.
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Three Chart Patterns To Compare.

Lets see what chart pops first. Which one of the three following charts do you do think has the best short term upside potential)? 1)
2)
3)
Here is what the first chart looks like at the close three days later.
Can you see how it spiked yesterday to really end up where it was seven days ago? What stock is it? It's McDonalds. What a wonderful one day rally it had yesterday. 2) This time the number two stock on our list is Boeing. It jumped today after two days of slightly edging up.
Look at how the 180 series of Calls that expire this week jumped on the day!
One thing to notice is how it seemed to test it's lower resistance level this morning before it quickly blasted off. One could say that it helped that the D.J.I. jumped 300 points on the day however the other two charts didn't jump. The third stock is Roku. In it's above chart it seemed to be firmly in a sideways moving pattern. It still is. Patience is a virtue.
Is there anything to be learned from this? Well let's do another blog like in the near future to see what the results are like. Boeing (and Caterpillar) are both in price ranges that sometimes swing like this and Boeing is particularly susceptible to news releases which can be either good or bad. Caterpillar not so much so.

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