Awhile back I said I couldn't think of a any stocks that I wanted to throw money at, other then ELON. Now we have the rest of the market joining in, raising the bar for all equities, adding support to ELON's run. I said high 60s was resistance, we went through it SO FAR like butter. Yes, of course we are going to get more news. The Italian utility news was big Real Big, there will be more deals like that one. It's happening for ELON. Remember this, ELON has run far already, the ultimate buy point, easy money buy point I like to call it, has come and gone, that was on the 10th. I have double money on my first buys on the 10th already, now that is quick. So it has run far already. My jaw would drop if it went right up to 90 from today's gain, in the same fashion it has moved from the 10th. So I see the gains going forward from here happening in slower slope. Right now maybe the correct plan is to wait and watch, to see if it consolidates it's gain in the 60's low 70's. If you can't take it buy some now, but except the fact that you could end up with a 10 to 15% loss, cause it could drop like a rock, if the market falls apart again. But if ELON does in fact consolidate it's gain, which I believe it will depending on Mr. Market as always, then you will have base to build on for the run to the 90's which is the next resistance area. The base that ELON is running off of is short. I would rather of seen a three to four month base to weed out most of the sellers, leaving the strong holders at the end of the base building period. What I mean by that last sentence, is that the DROP is fresh, and many holders will be happy to get out whole, or a much smaller loss then they where sitting on a mere week ago, so the resistance might be hard to get through, the first in the high 60's is important, getting through it, will cause wana be holders to come out of the closet, and current and new holders like myself, to want to buy more, for the run to the old high.
I believe the market bottom, when we rallied on the bad econ. numbers, I still believe the market will do the saw tooth dance, one never knows if and when it will fall apart again, or move higher, that's why should try to hold and pick some stocks that will participate in a recovery.
Greg |
