Expect Tesla Shares to Keep Revving Higher With This Combo Signal By Lucas Downey, Editor, TradeSmith’s Alpha Signals Trade war worries are winding down. And stocks are winding up. Just last week, since China and the United States announced the 90-day pause on tariffs (thus sidelining the biggest headwind for stocks), the S&P 500 climbed 5.3%. For those keeping score, that amounts to half a year’s expected gains for the index, spanning decades. Sidelining the biggest headwind for stocks (trade wars) means this bull market is ready to kick into high gear. And apparently, growth stocks are back. When we slice last week’s S&P 500 sector returns, the big standouts were Consumer Discretionary and Technology stocks, which jumped 7.7% and 8.1%, respectively. Check it out: 
Leadership in these groups highlights how investors are once again betting on the biggest themes we’ve experienced the last few years. For technology, it’s semiconductors and AI buildouts. For discretionary: retailers, hotels, restaurants, leisure, and automakers each include big winners. The bottom line is this: Just about all global companies stand to gain given the trade war easing. But one company that’s running red-hot lately, Tesla (TSLA), is primed for big success… even after its explosive rally. (Disclosure: I hold a long position in TSLA shares.) Today we’ll unpack two signal studies suggesting the near-term setup for TSLA shares favors the bulls. When investors are piling into growth stocks, you want to lean into the best of breed. | Recommended Link | | | | “What if you could pay for almost anything you need… All without using cash… And without swiping your credit card. Sounds impossible, right? It’s not. In fact, I’ve been using this little-known technique for decades… One that lets me generate extra cash – upfront – to help me pay for everyday expenses. I call it the “Bill Payer”. And the best part? I show you exactly how I do it… Step by step, on camera. You’ll watch me use my green card linked to my brokerage account… And you’ll see the upfront cash hit my account instantly when I use this technique.” – Jeff Clark Click here to see the “Bill Payer” in action. |  | | Tesla Shares Have Gained 57% Since the Market Bottom Tesla is more than an EV company. It also services the fast-growing energy and solar market. Its Powerwall home battery system stores energy from solar or the grid. EVs and batteries require rare earth metals, so a trade truce is a very positive development for Tesla. As of 2024, the Energy Generation & Storage segment now makes up 10.3% of Tesla’s annual revenues, coming in at $10 billion. That’s a $4 billion jump from 2023’s $6 billion haul. Given one of the main reasons for Tesla’s epic slide this year was the mounting trade war, it only makes sense it’d shine once those clouds parted. Shares have gained a whopping 57% from the market low made on April 8, and last week’s gain amounted to a 17% jolt. 
That’s a steep move for any trader to swallow. It may look like a fool’s bet to buy the stock up here. But history says that’s wrong. Using TradeSmith software, I was able to spot a unique pattern. TSLA shares gained 20.3% in the five-day period ending May 15. Since 2010 a pop of 20.3% or greater over a five-day span has only occurred 81 times. Here’s what happened next: - Two weeks later shares jump 7.6%
- One month later shares pop 6%
- Two months later shares climb 15.9%
Now, I should also point out that the positive hit rate is above 55% in all instances… That’s not bad, if you ask me. But what makes Tesla extra interesting given the better trade war news and this signal study is the following seasonal pattern we spotted at TradeSmith: 
Over the past 14 years, the period from May 19 to July 13 has seen an average gain for TSLA shares of 24.3%! And it’s incredible to note that shares have been green during this seasonal window every single year back to 2011. You can see the statistical breakdown below: 
When you pile all of the evidence together, we’re looking at one strong momentum setup for Tesla: - Shares have screamed higher since the market low
- The company resides in one of the leading growth sectors
- China trade tensions are easing
- Recent momentum favors more gains
- And then add on the seasonal tendency beginning now
But TSLA’s not the only one, by the way. Amazon.com (AMZN) is in a similar situation, as TradeSmith CEO Keith Kaplan recently alerted his followers on X. That seasonal opportunity is due to kick off May 24 (which this year falls on a Saturday): 
Follow Keith on X, @KeithTradeSmith Trading is all about stacking the odds in your favor. Make smart bets over and over, and eventually you’ll win… and win big. With every passing day calming investors’ nerves over the China trade spat, it’s time to zero in on high-quality growth stocks rising from the ashes. New leadership is here. TradeSmith will spot tomorrow’s winners. All you gotta do is respond to the signal. That’s a winning roadmap! Regards, 
Lucas Downey
Editor, TradeSmith’s Alpha Signals P.S. Keith also just posted on X about two other major tech stocks that are entering a period of historically strong performance. And if you haven’t followed Keith on X yet, you can do so @KeithTradeSmith and see the latest setups that he’s most excited about on his TradeSmith dashboard. It’s completely free for you to access and always will be! | 
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