"Elon Musk" ETF Is Breaking Out

July 28, 2014 10:58 AM

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"Elon Musk" ETF doesn’t really exist. It is an index I have been following for a while. It consists of only two stocks - Tesla Motors and Solarcity. Both of them are showing notable relative strength today on the background of weak general market.

Long-term trends are sustained by catalysts - a number of consecutive catalysts that are able to sustain investors’ expectations.

Tesla Motors has just announced battery factory deal with Panasonic and it is rising on heavy volume. The so called Gigafactory is the next big catalyst for Tesla as it could help to solve the biggest challenge for the solar industry - energy storage. Tesla is scheduled to report earnings later this week.

In the meantime, Solarcity is building a new base. It could be owned on a breakout above 74 with a stop below 71.50.

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