4/4/2018 Trade Wars Overblown? Buy when the market goes up on bad news. BABA, QQQ, TSLA, AAPL, MU.

Fun Fact #19

Did you know that Tesla (TSLA) stock went up over 34 dollars from the opening price today? That’s over 13% up from the opening price to the closing price.

I guess it’s true that TSLA stock moves as fast as its’ cars. 

TSLA 4_4_2018.PNG


 

4_4_2018 Market Stocks.PNG

Update: If tomorrow we close green, I believe my April 9th targets will be hit by April 16th instead (one week later). 

Today was a glorious day for me, and I’ve gained confidence as a trader. I didn’t sell into the morning gap down panic, and sticked to my trading plan. This morning, I asked myself, “Wait a minute, BABA is within the support zone of 165-175, and it is currently at 167.5 in premarket, why the heck am I not buying it?” And so, I closed my eyes and bought some shares at 167.5. I added some more at the start of after hours since I’m expecting a higher move tomorrow. 

BABA analysis 4_4_2018.PNG

 

Lesson I learned today: The worst time to sell is when your emotions and entire body are begging you to sell. 

 

Today the major indexes opened down about 2% due to trade war news escalating. Despite that, we ended up rallying hard and the major indexes closed up over 1%. Since we went up on bad news, I’m thinking we will close higher tomorrow.

QQQ analysis 4_4_2018.PNG

QQQ is back at the 160 level which is the key weekly level to hold. Another up day tomorrow will confirm that we’ve got a short term bottom in place. A test of the 162-164 range tomorrow would not surprise me.

AAPL analysis 4_4_2018.PNG

Take a look at the AAPL chart above. Notice how price bounced off the 165 level 5 times in the last two weeks. The rectangle I added shows the minor support level where buyers start getting aggressive. A close below the 165 level suggests a retest of the 150-155 zone. Since we are still above the support zone, I expect AAPL to retest the 175-177.5 level within two weeks. 

MU analysis 4_4_2018.PNG

MU has defended the 49-50 breakout level which is very bullish. The momentum has now shifted to the buy side. As long MU doesn’t close below the 49-50 support level, I think MU has a good chance to retest the 52 week high around the 60-64 level.

MU is down quite a bit in afterhours trading, but I don’t think this will sway the bulls tomorrow.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s