Tesla update

In this post on Tesla, I presented the high level EW model shown in the smaller picture at lower, left.  The latest snapshot from today on the right shows that this call was very accurate, at least so far.  I have the same current concern with TSLA as I do with DRYS: Is the current bounce part of the 3rd wave up or is it really just B of 2?  Time will tell but I think the shares have more of a bounce ahead of them before this decision will get made.

I think that it really depends on whether the S+P 500 has a big decline right now.  If the current TSLA bounce goes up more than 61.8% of the recent retracement then it could be evidence of a 3rd wave breakout (i.e. the red line modeled below, left and right).  But given the volatility of TSLA I would feel more comfortable buying the dip if it went down to the 61.8 as shown in the blue model at right.  Charts that are in the current state are in a no man's land of EW analysis.  It could equally go either way IMO.  The smart short term trader sits on the sidelines waiting for more clues as to the mind of the TSLA herd.  At the speed this is moving right now you won't have to wait very long.