Is it time to buy or sell Tesla (TSLA) — not the car. The stock. (April 14, 2014)

We’re checking out Tesla ( NASDAQ:TSLA ) today, because this thing could fall quite a bit farther. Let’s look at the weekly chart to start with; you can see the big run that it’s had, higher high, higher low, higher high, well still we’re at a higher low, but this is down just below $200.00. The reason I’m looking at it is this, when a stock doesn’t do what you would expect it to do then you’ve got to start looking the other way. You can’t wait for it to do what you were hoping it would do even though it didn’t do it; that’s wishful thinking and that’s rarely a winning strategy, it’s a popular strategy, but it’s rarely a winning one.

So look, Tesla ( NASDAQ:TSLA ) had been drifting down here, 50-day moving average, that seems like a pretty good base of support to me; for four days the stock traded around that, gapped up, ran up, and now that has completely retraced this little micro move here. Now this is down to a new low, relative to just about everything here, this whole move up was from a higher level here. So my suggestion is this, short Tesla ( NASDAQ:TSLA ), it still has a ways to go; you can look at it on a 2-day chart, it shows it even more dramatically, and by the way, forget about this moving average, this is a 50 2-day moving average so it’s like a100-day moving average who cares.

The bottom line is this: if you are long Tesla ( NASDAQ:TSLA ), seriously, honestly, and brutally, you’re in yesterday’s trade hoping for the same thing to happen tomorrow, it’s not going to happen, and if this makes you unhappy, I’m sorry, you’re a “Teslonian” and I really can’t help you. You’re probably still long a lot of biotech stocks too. Go ahead and just sell this thing, if you’re up for shorting it I think you can make money on that to. This is a momentum stock where the momentum has clearly run out of it. There will be a time to buy Tesla ( NASDAQ:TSLA ), but it isn’t going to be tomorrow.