See also previous blogs. This stock looked like a buy months age. It was but barely. Looking at it again, an argument can be made that the 5th wave (of C in an A-B-C correction) is not yet complete. There is some overlap but that is acceptable in a diagonal. Wave 3 cannot be the shortest and as it is already shorter than wave 1, wave 5 cannot drop below $2.25. That is also where waves C and A are equal. Time will tell.
Wrong so far, but this may just be a “throw-over”. Give it a little more time, this may have been an acute short squeeze .
The top ten account for slightly more than half of all holdings, now near 10 bln. We have no idea how to count this thing, but we do know that you are in a bubble when the slope of the curve is straight up. This is about as close as you can get to the vertical.
The Federal Reserve prides itself in having juiced up the value of stocks and when you combine that with complete ignorance with respect to what you are buying the results are impressive as we have here. But it is all an illusion if you look at it from a macro perspective. For each seller there must be a buyer so by the time the dust settles all the new wealth will have evaporated. From a micro perspective, that is you, you can make out like a bandit and we suggest you do exactly that by selling now.
So we were right to assume this stock would crash. However we were wrong in assuming the party was over. We got another 5th wave up worth about $90 in three months. This is a very nice wedge shaped structure. We recommend selling yesterday.
By the way, these electric cars cost about $71,000 a piece, but you are guaranteed a resale value , quote – Not only is Tesla guaranteeing that resale value, but Tesla CEO Elon Musk is personally standing behind that guarantee to give customers absolute peace of mind about the value of the asset they are purchasing. - unquote. The company is apparently reporting tonight.