Can Elon Musk Commit to Tesla?


SPY did a double top at $410 on CPI day and then again on the FOMC at $405ish. I sold a lot of calls to collect premium. My SPY puts also helped into Friday, when I sold half and made some into a put spread. We're seeing a small bounce attempt today. The resistance #1 area is $386-$388. If we see that, I'd probably sell $393-$395 calls because I think  move into year-end would be capped.

QQQ's failed to hold $295 on CPI day and has been under pressure since hitting a low of $272.67 Friday. If we see a bounce attempt today, I'd think $278ish is resistance and then we'll have a big one around $283ish.

So let's talk Tesla (TSLA) and some other names.

TSLA has been broken since September with lots of ways to stay out of the way. Last week it showed extreme relative weakness and Elon sold more shares. On Friday it was rejected into the $161 area and made another new low on the year, hitting $150.04. It's trying to bounce a bit on the possibility of a new Twitter CEO. But it’s hard to get excited here. See if the early strength holds or fades.

AAPL sold down hard last week to hit $133.73.We'll see if today's bounce sticks for a day or fades. $136.50-$137.50 is now resistance.

NFLX filled the gap up to $332. It’s been a great vehicle for us the past two months. I'm glad we were out before Last Thursday's news and gap down. It made a low of $286 and had a small bounce Friday. I wouldn't chase prices. Perhaps it goes green to red today.

MSFT hit $263 and sold down fast. Some got short around $253 and it hit $243ish. I'd think $249ish would reject a bounce attempt.

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