Sizing Up AMD and TSLA
Tesla continues to forge higher, while AMD is starting to dip.
The stock market finished last week strong, and so did we, as our lotto calls in NET went 5x to 7x, and with the S&P 500 notching its 59th record high this year.
It will make it 60 record highs once the market opens, as the futures continue to push higher.
Below, let’s start with a look at the S&P, followed by our trade setups in AMD and TSLA.
Just to add some color on the ES (S&P futures), here’s a look at the recent correction from September to early October. Notice how the ES found its footing near 4,293 — the September low.
After some chop and rejection from 4,400, the ES eventually reclaimed the 50-day moving average, which has been vital so far this year. Now over 4,600 and pushing new all-time highs ahead of the open, the S&P 500 is likely to give us our 60th record high this year.
Should the run continue, bulls should keep an eye on the 4,725 to 4,730 area. There we find the 161.8% extension of the most recent correction.
On the downside, don’t fret pullbacks to the 8-day and 10-day moving averages. A break of this area — assuming it doesn’t happen on Monday — puts the prior all-time high in play near 4,550. That seems like a buying opportunity as well.
Remember, traders and investors can extrapolate the ES setup with the SPX or SPY instruments as well.
How High Can Tesla Go?
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