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Showing posts from June, 2014

Tesla gets its groove back: Electric car market broadens

Tesla (TSLA) closed up 9 percent today on strong volume, with over 12 million shares transacted (almost twice its recent daily average volume). 

The move above $220 and the 50 day moving average signals a bullish emergence from TSLA's recent base pattern. Are we seeing the start of a new uptrend in Tesla's stock price?

Here's an updated TSLA chart with today's closing price at $224.61. The stock closed near the high of its daily range, another indication of strength.



Elon Musk recently announced that Tesla would "open source" its patent portfolio, which should help fuel innovation in the EV market and encourage further build out of the needed electric charging infrastructure. Traders seem to have digested the patents strategy and decided in its favor. 

More on Tesla's patent strategy and Musk's vision for electric cars from Wired:


" ...Asked what Tesla shareholders thought of the company’s move, Musk downplayed the importance of owning patents, sayi…

Jazz Pharmaceuticals: Market leader chart review

When reviewing charts and stocks in my watchlists, I sometimes look at long-term charts of leading stocks. 

I like to step back to the weekly charts and try to understand how the bigger price moves unfold. To try and answer the question, "what signals the emergence of a potential super-performance stock?". 

Which brings me to today's prime example of a market leader and super-performance stock in this ongoing bull market. Below is the chart of JAZZ, aka Jazz Pharmaceuticals, from 2008 to 2014. 



Note the performance figures from the chart: JAZZ is now up 4,100% from its mid-2009 surge to the $3.50 level. If you had bought JAZZ at $0.80 as the market was bottoming in March 2009 and held to the present, you'd be sitting on a gain of 18,000%. 

The biotech ETF, IBB has had a sixfold advance over the same time frame. So in this particular instance, you were well compensated for assuming single stock risk in a rather volatile sector. 



Enough of the backward-looking hypotheticals…