Market

This was a good week with NASDAQ up 3.5%, S&P500 up 2.1% and DJIA up 0.5%

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Tesla

A bunch of not-so-great news on Tesla - higher wages, production halted in Germany, a very competitive China market and multiple downgrades have the stock below its 200 day moving average. While it has done that before, it won’t go much lower, unless the narrative dramatically changes.

Watch this stock very closely for a sign of reversal for a SWING TRADE. There are bulls who love this stock for the long term as well, but this might be one of the best trades coming up.

Video of the day

Wingstop $WING - terrific franchise, good stock, but rich valuation, high debt and due for a small pullback.

Good setups for Swing

$SPOT Spotify is turning. They are focused on the bottom-line more now, their margins are getting better and the stock is turning to show that change. This should be good to $216 in 2-3 weeks to earnings (Feb 6th)

Cup and Handle on $WIT Wipro with a terrific Power Earnings Gap Up candle, usually means this goes higher, but watch for a flag or pennant to form and this should get to between $6.7 and $7.4 in 3 weeks - 10% higher. Posted $2.6B in revenue and said it is seeing IT outsourcing services get stronger after 6 quarters of poor performance.