Has Tesla Bottomed?

Daily Pit Stop [fstp, logo, header] March 7, 2024 [ag views, logo, header] Has Tesla Bottomed? At least as I write this that is. Tesla Inc (Ticker: TSLA) has 3 days going down only to rise on the 4th day. My 3 day rule tells me after 3 days of closing in a consecutive direction, if it closes the same direction day 4 stay with that direction or at least lean that way via strangle. If it reverses, get ready to follow the new trend on the reversal.  That is an old floor rule that I learned from an old floor guy when I was a young floor guy. It's not 100% but it is great for momentum. I use it in the [Easy Trade Button and Trading Desk]( all the time. [fstp]( TSLA 20 day chart Don’t be surprised if TSLA is back over $190 in a hurry. - AG  [logo, pit profits] Want to find YOUR winning fit? Give our Customer Care Team a call at [1-888-872-3301](tel:/1-888-872-3301) Monday-Friday from 9 a.m. - 5 p.m. EST. Or email them anytime at [support@optionpit.com](mailto:/support@optionpit.com)  [logo, header] Is this the top? Hey Crypto Traders! Are we reaching the top? Is volatility peaking out here? We finally saw a move big enough to flip the at the money volatility term structure into backwardation for both Bitcoin and Ethereum.[cry] Let’s break that down. Term structure is comparing the difference between the volatility of two or more expiration dates. Backwardation is when the front month volatility is higher than the back months, which is what this chart is showing. This usually happens when there is an imminent event or there was a major move. Buyers are coming for the nearer term expiration options. Why is this significant? Sometimes it’s hard to understand when implied volatility is expensive or cheap. Looking at outright implied volatility levels isn’t always a good method because historically higher/lower volatility levels must be contextualized by that historical era as well. This is why the term structure, along with realized volatility, is often a better gauge. Realized volatility is the actual volatility of the underlying over a period of time. Long-term expirations are better estimates of the current era’s “median” volatility, while short-term expirations reflect today’s environment. Therefore the shape of the term structure is a better way to gauge peaks and valleys. [cry] It is a comparison of all the expirations. Looking at the term structure richness chart above, we can see the “premium or discount” of each term structure. (The chart measures the weighted average difference between all expirations) A 1.00 reading is flat, while anything above 1.00 is in backwardation (the front month being higher than later months). We can see that the recent activity has taken us to levels seldomly seen. This can help us understand the true volatility environment. I will be bringing you more crypto levels, data and news absolutely free every week. - Greg Magadini  [fprm] [prm]  Hey Influence Traders, It’s good to be right. I’ve been hot on defense and energy stocks. In the defense sector, I’m deep into drones. A solid stock, and one that Mark Sebastian and I put a trade on, is Aerovironment (Ticker: AVAV). AVAV’s stock price was up over 42% the past week (20% in one day). On the energy side, we looked at Nuscale Power Corp (Ticker: SMR). Unfortunately, we did not put on a trade. When you have conviction on an idea you only make money if you act. It was a missed opportunity as SMR was up over 62% the past month. Much of that was driven by a squeeze on short sellers. Another area of energy that I keep a close eye on is lithium. Lithium is under stress due to a drop in demand for electric vehicles. But the combo of SMR and lithium gave Andrew Giovinazzi and me an idea. [Let’s Spin Up Another Trade]( - Frank --------------------------------------------------------------- Don't miss when our traders go live! Get an alert everytime we open the live rooms to all of our readers for free by selecting the calendar you use below. 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