Public trading strategy
Tesla crushes delivery estimates just as interest rate hikes get off the table —
Thesis
Tesla's massive delivery beat shows the company is finally recovering from its sales slump, which solves the fundamental business problem. Meanwhile, the weak jobs report means interest rates won't go up, which lowers the cost of financing a car. When a company beats sales targets right as borrowing costs stop rising, consumer demand and stock valuations usually surge together.
Strategy approach
Construct a swing trading strategy for TSLA on the Daily (D1) chart. Enter long when TSLA breaks above its 10-day high following an earnings or delivery beat. Filter entries to only occur when the 10-year Treasury yield (TNX) is in a 5-day downtrend. Exit on a 7% trailing stop or a close below the 50-day simple moving average.
Markets and timeframes
TSLAD1