TSLA - Q2 much like Q1

Whilst the main market closed moderately mixed, there was significant strength in Tesla, which settled +6.5% at $347.09. Near term outlook does threaten some cooling, but no lower than $330. With the US capital market still giving Musk a 'free pass', mid term outlook is bullish.


TSLA daily

TSLA monthly

Summary

Suffice to add, Q2 EPS of -$1.33 was identical to Q1, although the cash burn is accelerating, as the company is trying to ramp production.

The stock valuation is utterly insane, but as is often the case, so long as earnings are better than expectations - even if its nominally bad, the stock will at least initially rally.

Fundamentally, this is one messed up company. Higher sales will merely see Tesla lose even more money, and that is despite huge govt' subsidies for each vehicle.

Technically, Tesla is super strong. Many recognise the $500s seem viable in 2018, and I can't much disagree.

AAPL - earnings remain good

Earnings for Apple (AAPL) remain good, with the stock breaking a new historic high of $159.75, settling +4.7% at $157.14. Near term outlook offers a touch of cooling to at least $154. Mid term, the $200s seem a given, as the US/global economy continues to tick along.


AAPL daily

AAPL monthly

Summary

Suffice to add, earnings were unquestionably good, and the stock justifiably broke a new historic high.

The daily settling black-fail candle is a subtle warning of short term exhaustion, and some cooling to 154, perhaps $150 would be very natural within 1-3 days. However, mid term.. the trend is super strong, but fully justified on good earnings.

Most now recognise that the $200s are on track, certainly by late spring 2018.

CSX - short term weak

Whilst the main market saw yet another day of moderate chop, there was notable weakness in CSX, which settled lower for a fourth consecutive day,  -1.5% at $48.60. Near term outlook offers the $47s. A test of the 200dma - soon in the $45s, would sync up with sp'2435, before the mid term bullish trend resumes.


CSX daily

CSX monthly, linear scale

Summary

Suffice to add, recent earnings were fine. CSX is merely being dragged lower by the broader transportation sector, which has been a laggard across this year.

Seen on the bigger chart, the mid/long term trend is bullish. Things only turn mid term bearish if <$45, and then the target would be $35, back to levels seen in 2015/14.

Short term bearish, but mid term bullish. First soft upside target is the 50dma - currently in the $52s, and then the July 13th historic high of $55.48.