Last week I covered Tesla (TSLA). Well, it’s still slaying bears this week, and it’s setting up to be a bloodbath. I explain in tonight’s Chart of the Day video. (July 15, 2019)
TSLA
In this video I want to look at Tesla ( NASDAQ: TSLA ) and here’s why: Anybody who has listened to my videos for a while can sense the vitriol dribbling out of the side of my mouth when I look at this stock. I personally think this stock is a zero, it’s only a matter of time, I really do. When I see a Tesla ( NASDAQ: TSLA ) driving around the street, do you know what I think of? I think of liability in the company for repairs. They don’t have service, they don’t have repairs, they don’t have that stuff in their budget. It’s a disaster, right?
So here’s the deal: Everything that I just said is not like an original thought on my part. The bears know all of this and mega mucho more than me. There is a huge argument for this stock going much lower than it is right now. The argument that the stock is cheap is a specious argument and it is based more on religion than anything else.
You may be a “Teslonian” and you are still waiting for “Elron” Musk’s 4/20 deal. Okay fine, I support you in your wishful thinking, good for you, that’s not my deal. But everything that I have laid out for you, you are probably thinking I am going to say you need to short this stock, this is your golden opportunity. No, this is a bear killer. This is an absolute bear killer; I would not be short this stock. I don’t have a position in it, frankly, I don’t. That will probably change tomorrow but it will be to the long side. The company doesn’t report earnings until the 24th. I am telling you there are a lot of shorts leaning against this stock and as the stock goes up, it goes up $8.50 today, you think there are some short sellers that are going, Crap, life seems to be too short to have this short on.
All I care about is between now and the 24th when they report earnings. What I am thinking is, you are going to see a lot of short sellers looking at this chart pattern and thinking, well, this is moving up. I don’t want to stay short between now and earnings because I don’t see any negative catalyst. I’m short because I think the company has some bogus numbers and this and that and the other thing. I don’t like Elon Musk’s hair job and blah, blah, blah. So there’s any number of reasons why somebody is going to be short but they are not going to look at this and say the stock is going to fall between now and the 24th. No, they’re looking at this like I am and saying, “Crap, I think this stock could go up another 20 or 30 points before they report earnings on the 24th, that is my trade.
M trade is, I think this stock is going on a heck of an earnings run. I would not be long this stock over earnings. But I sure as shooting wouldn’t be short this stock on earnings either. I think there is a good run to be had here; it won’t be in a straight line but with just nine days to go and the stock running up along the upper Bollinger Band, I think you are not really going to hear Musk tweeting or emailing or saying too much at all because the stock is working. So be long the stock; I think as long as you’ve got some kind of risk management I think you can buy the stock here. Keep a stop below today’s intraday low, you’ve got less than 4 percent, about 3.5 percent risk on the trade. And frankly, I think it is going to go into the 270.00s easy before earnings.
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