How to buy TSLA Tesla Inc at All-Time Highs 6-9-20

Tape reading is not as popular as it was in the old days. Computers have taken care of that.

Today's lesson gives you the one price that shows you how to "read the tape."

As you practice and master this skill, you will never look at trading the same way.

You will have a level of confidence, conviction and motivation that takes your passion for trading to new heights. 

Savvy traders have adapted and are skillfully implementing tape reading in a much different way today.

Chart reading is one method. Another technique is interpreting news and volume traded off the news.

When I say the old days, I am referring to 2007. This is when the NYSE expanded to allow increased amounts of electronic trading. (More on this at the end of the article)

Tape Reading Article

Traders would read the ticker tape (invented by Edward A. Calahan, updated by Thomas Edison) to determine the recent buying and selling pressure.

It was much easier to spot a large buyer or seller because daily volume was incredibly light so it was easier to spot a big player. 

The down side to light volume was liquidity. It could be difficult to exit a trade at a reasonable price.

In the early days there were “bucket shops” to place your trades.

I guess you could say they were the first brokerage houses, but without brokers. Prices were posted to a chalkboard as they crossed the ticker tape.

Trading Game Plan 6-9-20

Watch: Today's Best Stock Picks

TSLA (TESLA Inc.) kissed $950 dollars yesterday.

Love it or hate it, all-time highs are on the table. The question is do we buy now? The same can be said for AAPL stock (Apple Inc.)

Today's criteria is simple. We need to see the stock above Mondays open price.

As long as this week remains bullish the tape tells us to be long, despite any bias to the contrary.

A conservative trade is above yesterday's high and into new all-time highs.

We have two interesting trades of the day; one in DKNG (DraftKings Inc.) where I'm looking for the stock to resume the bullish rally.

The other is SQ (Square Inc) where the price action traded into an inside, inside day on the daily charts.

For SQ I'm looking for an explosion in volatility. A fancy way of saying I expect a larger green or red candle today. This is a one day play that can offer solid rewards and exit at the close.

HOG (Harley Davidson) looks great on the charts but it's most likely to pause the next few days so keep it on your radar for a new swing trade. 

BYND (Beyond Meat Inc.) exploded higher but closed near resistance. I give a clear game plan for how I'll be trading this stock today.

Have a great day.
Pete