Part 5/11:
Tactical Strategies for Generating Alpha in a Sideways Market
For long-term investors, holding Tesla beyond the short term may be the best approach. But for active traders aiming to outperform (generate alpha), a more tactical approach is necessary, especially when the stock trades within a sideways channel.
Recognizing the Four Market States
Bullish: Since April, Tesla’s stock has experienced a bullish phase, entering a recovery from historic lows around $220 up to over $460. During this phase, accumulating shares was advisable.
Explosive: Markets often exhibit rapid, exponential growth phases. While such surges are difficult to predict precisely, history suggests a significant upside potential into 2026 or 2027, possibly earlier.