PreMarket Prep Recap, Feb. 4, 2020: TSLA Continues Its Unbelievable Move

On Tuesday’s edition of PreMarket Prep, Joel Elconin and Dennis Dick broke down Tesla Inc’s TSLA continued move highe. The stock, which has been on one of the most epic moves of any stock in recent memory dating back to October, opened for trading Tuesday up 13% from Monday’s close.

Dennis jokingly mentioned to a fellow trader on Monday night that he should buy Tesla.

“I said to him ‘I just feeling like buying 100 shares of Tesla and calling it a night, and come in tomorrow and I’ll probably be up 100 points.’ I kind of said it sarcastically...here it is. That would have been the best call. It’s absolutely insanity. It’s come this far, everybody’s got $1,000 on the brain. This has been the most epic short squeeze I’ve ever seen in my life.”

Joel, who spent part of Monday test driving a Tesla, is having a hard time understanding how Tesla will get the kind of market share that other people expect.

“I’m just saying, what can people afford? To get that kind of market share, is everyone going to be driving luxury cars? You can’t argue with the price, I’m just looking at these projections, and is everyone going to be driving a Tesla?”

For the full Tesla discussion, click here.

What About The Market?

As far as the overall market goes, Dennis and Joel were impressed with Tuesday’s higher open.

“The market is pricing in that this is a temporary problem and it’s going to get fixed,” Dennis said. “I don’t know how this ends, but right now the pricing in that they’re going to figure it out. And maybe the market’s right.”

Joel said he’s keeping an eye on last week’s high of 3,297.50 in the S&P futures, hit during Friday’s pre-market session.

“Clearing Friday’s high and making a new weekly high would be very impressive for the market today,” he said.

Alphabet’s Earnings

Alphabet Inc GOOG GOOGL reported mixed earnings after Monday’s close, and the stock opened down 4%. Here’s what Dennis had to say:

“I’ll tell you from a long term perspective...every time Google has had a significant fall on earnings it’s been a buying opportunity. And I don’t see any reason that this is different. With that being said, you’ve got a lot of technical resistance up there at $1,500.”

Joel will be watching to see if the stock broke out of the pre-market/after-hours trading range (where most of the volume was between $1,400-1,440) before potentially playing it.

For the full Alphabet discussion, click here.

Other Stocks Discussed On The Show

Stocks also discussed include:

• Casino stocks like Wynn Resorts WYNN and Las Vegas Sands Corp. LVS after Macau closed its casinos (23:00)
• Lumentum Holdings Inc LITE (27:29)
• Ferrari RACE (29:14)
• Exxon Mobil Corporation XOM (31:55)
• NXP Semiconductors NXPI (35:43)
• Ralph Lauren Corp RL (37:30)
• Royal Caribbean Cruises Ltd RCL (38:32)
• Snap Inc SNAP (43:04).

Featured Guest

Todd Gordon, financial advisor at Ascent Wealth Partners, CNBC Contributor and Founder of Trading Analysis

Todd Gordon is the founder of TradingAnalysis.com which provides actionable market analysis and clear trading strategies in the currency, commodity, and equity markets for both amateur and professional traders. Todd's international following comes from his ability to translate Wave Theory into clear and concise trading strategies. His research clients value his clear and concise analysis and discipline as he consistently applies his analysis to his personal accounts. Todd lives by the mantra, "Plan Your Trade, Trade Your Plan."

Topics discussed with Todd:

• How he’s approaching this market in his various portfolios
• What he thinks of the impact of the Coronavirus
• Why he’s pivoting to wealth management space

Listen to the full interview with Todd in the podcast below, or watch the clip on Youtube HERE.

PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET here. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunes, Google Play, Soundcloud, Stitcher and Tunein.

Meet the Hosts:
Dennis Dick
Joel Elconin

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Disclaimer: All of the information, material, and/or content contained in this program is for informational purposes only. Investing in stocks, options, and futures is risky and not suitable for all investors. Please consult your own independent financial adviser before making any investment decisions.