Are you a fan of Tesla (TSLA)? Here’s your trade. (August 30, 2016)
TSLA SCTY TSLA JPM TSLA SCTY
We’re going to look at a couple stocks here, run by the ‘carnival barker’, Elon Mus, Tesla ( NASDAQ:TSLA ) and Solar City ( NASDAQ:SCTY ); here’s why: First of all I own one of their products, Tesla ( NASDAQ:TSLA ) I mean, LOVE the car!. I have nothing bad to say about it. I wish it didn’t have 26,000 miles on it. Love it, love their product. But the stock, no way. This has a high cash burn rate. Anytime this guy says they’re not going to need to raise more money, they never need to raise more money, all the way until the time that they raise more money. Credibility, there’s a lot of credibility around, none of it in this ticker. So I’m looking at this, and if you are a ‘Teslonian’, if you are a Tesla ( NASDAQ:TSLA ) fan, Great! Here’s my suggestion: Be a fan of the stock. Be a fan of making money on the stock. You don’t have to be BULLISH on the stock. Again, if you’re like, “Oh, Tesla ( NASDAQ:TSLA ), but I love Tesla ( NASDAQ:TSLA ).” Great! Trade it to the short side too. It’s really okay. It’s not a mortal sin. It’s not even a venial sin. I know this because I was raised Catholic. There is no law against shorting a stock. I think Tesla ( NASDAQ:TSLA ) is TOTALLY shortable now.
And I think Solar City ( NASDAQ:SCTY ) IS totally shortable now. Remember, Tesla ( NASDAQ:TSLA ) is trying to buy Solar City ( NASDAQ:SCTY ). Can you say, sweetheart deal for the cousins? Of course you can. Both of these stocks, I think, are going lower. Headline risk? Always. You can always look for a tweet from Elon Musk talking about how he’s unveiling his next strategy. Just like he did a couple of weeks ago. But what you need to do is ignore all that stuff, instead look at the charts. Look at the hour long chart. This is an AWESOME road, right to nirvana, if you’re short. Tesla ( NASDAQ:TSLA ), same thing. You can be short these stocks. Don’t get all goofy on me and just load them up, but these are stocks that are coming out of volatility squeezes, trending to the downside, in a sideways market that is really not attracting much money. And my contention is, WHEN the market DOES start to attract more money you’re going to see more of it going into JP Morgan ( NYSE:JPM ) than you are Tesla ( NASDAQ:TSLA ) or Solar City ( NASDAQ:SCTY. That’s all I’ve got to say about that.
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