Here’s what I think about Tesla ($TSLA) (May 18, 2022)
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Dan Fitzpatrick here with my Fitz in Five video. I am looking at Tesla ( NASDAQ: TSLA ) today and not for any good reason other than you have got to stay away from this thing. I am just saying, the whole deal where everybody seems to focus on Tesla ( NASDAQ: TSLA ) and Twitter ( NYSE: TWTR ), oh, Musk is going to have to sell more stock in order to finance his acquisition of Twitter ( NYSE: TWTR ). That means down with Tesla ( NASDAQ: TSLA ) so that he can do that. Well, maybe Musk isn’t going to do that. Okay, well up with Tesla ( NASDAQ: TSLA ).
Leave the damn things alone, just focus on the chart. You don’t need to know the why you just need to see the what, that’s all. Knowing the why is something that people do before they go on TV. That’s what I do too when I go, I want to have something else to say other than, well Tyler, look at the chart. So you kind of need to know that stuff if you want to sound smart. But all you really need to do is have a couple of eyes that are working fairly well.
This is a stock, if you look at it from this direction, if this thing falls any further and starts to break through this level of support here, right around 700.00, I don’t know who is number 2 but we could see a time when Musk is no longer the top-dog on the wealth triangle. He is no longer the apex predator because of most of his wealth, I don’t know about most of it but a lot of it is tied up in Tesla’s ( NASDAQ: TSLA ) stock. So this is definitely a topping pattern.
The question is whether it finds support here or not. But if you just look at the moving averages, you see the 50-day moving average here, above, fine, the 200-day here. Look, this is how I kind of assess days, this will be crossing right around and about maybe next week. You are going to get the 50-day moving average crossing below the 200-day moving average. And by then the 200-day moving average is also going to be moving lower. So this would put this in a bonafide “danger Will Robinson” pattern, the stock is just going lower. We could see another rally here but I don’t know how, I don’t know, I don’t see it, I see just a bunch of heaviness here.
What I would do is, I would not own Tesla ( NASDAQ: TSLA ). Sorry, it’s true. I hope I didn’t activate anybody or trigger you. Here’s another one, this will get you all lathered up, ( NYSEARCA: ARKK ), I wouldn’t own this one either. Let me go back to Tesla’s ( NASDAQ: TSLA ), just stay away from this, that’s all. Focus on energy, that is what I am focusing on for Stock Market Mentor members, and even that, that stuff is struggling right now. The uptrend is still intact ( NYSEARCA: XLE ) but it is kind of struggling.
When the market is down so much in a day ( INDEXSP: .INX ), this is down almost 4 percent, that is front-page news and I don’t mean the front page of the Wall Street Journal or Investor’s Business Daily, I mean like your home town rag. This is just really, really bad trading action and I don’t think it is the last time we are going to see this type of thing, we’ve got a long way to go team.
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