But unfortunately, earnings do not directly affect stock prices. The mood of the herd does. And the charts help show the mood of the herd. In the case of TSLA shares the mood is at a 5th wave and that mandates a 3 wave pullback to the prior 4th which is back down around $115. So yeah, this is going to take TSLA lovers for a bad ride. They are all partying on the Yahoo TSLA message chat board today but the chart tells me they will soon be complaining about "manipulation" and "the evil shorts" when in fact it is the smart money longs running away from shares that are too well loved too soon.
Right now there is zero indication of the coming collapse unless you know how to interpret Elliott Waves. There is nothing but blue sky, up up and away written all over this chart to a standard technical analyst. That last wave up is being called a breakout because of being a "higher high". There are a few wise old players out there like Doug Kass who said he took a "small short position at $205" (he must know an ending diagonal throw over when he sees one) but in general everyone loves the shares. That is the perfect reason to run away from them IMO.
- Failure to break below the lower support negates this view.
- A re-breakout of the top resistance negates this view.
- Breaking down below the lower support and then breaking back up into the channel should be cause for pause of anyone shorting this.
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