Tesla, Oil, Banks, and More…!

The Jump in Crude

Crude oil prices have been trending lower since last June. Yes, there have been spikes along the way, but all in the overall direction of the trend, which is down. However, over the weekend, OPEC announced some surprise cuts, causing the price of crude to gap along with the SPDR Energy Sector (XLE).

Check out the chart below:

Crude Oil Futures – Daily Chart


The result in XLE was a significant gap higher through crucial resistance zones.

In fact, due to the weakness in XLE and the SPY, I planned to short the SPY at $400 and XLE at $82. However, when XLE breached above the 200 SMA (purple line), that told me to pause and give it another day to see if the price would return below the 200 SMA for a short.

It did not, and the next trading day experienced a higher gap.

Check out the XLE chart below:

XLE – Daily Chart

Tesla, The Nasdaq, & More!

So, where do we go from here? I didn’t get into my XLE or SPY shorts, and there was also some big news on TSLA, causing a little Nasdaq softness. I’m still trading Tesla prior to earnings, and I’m focusing on April seasonality in mega-cap tech along with keeping an eye on this oil move and the resulting impact on the S&P. While I would have loved follow-through on TSLA after Friday, I don’t think this long is dead yet.

I stopped by TraderTV Live on Monday afternoon to discuss. Check out the video with the full segment below!

Up Next...

When a Ticker Makes Targets

Hey Traders! On Monday, I sent you a video about my short-term setup in Tesla, along with my $250 price target. You can check it out in the Tweet below… Since then, the squeezes I noted fired to the long side, and Tesla traded directly to my Fibonacci price target at the 1.272% extension level. … Read more

Read More

A Trade Setup in TSLA

Good morning, traders! The Nasdaq futures are choppy at 16,000 after making quite the run. So, what’s next? Looking for the next round of setups, of course! When tickers and indexes get sticky, squeezes will start to consolidate. Those squeezes generally occur on the lower time frames first. When those squeezes fire, they can either … Read more

Read More

The Microsoft Effect

Hey traders! Microsoft made a new, all-time high yesterday and may very well take the Nasdaq along for the ride. What is next to come in Microsoft, the Nasdaq, and more? Check out my video update below:

Read More

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now