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“Market makers know that the market is always right.  You are wrong if you are losing money for any reason at all.  Market makers have that drilled into their head.  They know value is irrelevant in times of market stress.” — Michael Platt, founder of Bluecrest Capital

Below is a snippet of content from today’s Morning Lineup for Bespoke Premium members.  Start a two-week trial to Bespoke Premium now to access the full report.

Tesla (TSLA) reported earnings after the close yesterday and beat expectations on both the top and bottom line.  The stock is set to open higher by just over 7% when the bell rings this morning, which would be its 15th gap higher on earnings out of the 50 quarterly results the company has posted since going public.  Below is a snapshot of the 14 prior gaps higher of 5%+ in reaction to earnings for Tesla as shown in our Earnings Explorer tool.  Historically, the stock has averaged a slight decline of 1.4% from the open to the close of trading on these 14 prior earnings reaction days, with positive returns from the open to close 5 out of 14 times.  Twice out of 14 times, TSLA has gapped up 5%+ on earnings only to finish the day lower because of sharp intraday reversals.  These two reversals came on back-to-back earnings releases in April and July of 2020.  Only once has TSLA tacked on another 5%+ from the open to the close after gapping up 5%+, and that came back in August 2018 when shares opened up 9.2% and went up another 6.4% intraday for a full-day gain of 16.2%.

In today’s Morning Lineup, we also take a look at a few bullish chart patterns we’ve identified across key US sectors and groups.

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