Today's proof point that the madness in crowds is peaking is the ridiculous momo chart of fake company Nikola (ticker:NKLA) which says it wants to build a hydrogen powered future for vehicles. Forget the fact that zero infrastructure exists. Sure, infrastructure didn't exist for TSLA and it has moved forward. But the infrastructure for Tesla was to add 30 amp service to the garage and bolt a charger to the wall. The equivalent thing for NKLA will be to bolt a hydrogen reformer, pressurization system, etc. to the wall. The cost will be astronomical and hydrogen explosions in residential areas will become "a thing". Anything they might do is 1-2 decades out. Trading on this company today is all momo; all herding. And so it will definitely end as a mania chart, falling below where it started with a bunch of stupid liberal bagholders crying about "manipulation" and how the oil companies conspired to keep this hydrogen energy off the market.
At the recent peak they had a fake market cap of 30 billion. But the comical part is that they have no products and no revenue. The herd liked the PowerPoint slides dreamed up by the CEO and the rip off of Tesla's name and so they took this POS from $7 to $95 in 3 months. But the peak is in now and so the patient shorts (those who slowly increase their bet over time) will get rich off this joke company. In any momo situation you cannot bet against it all at once because of the delusional madness of crowds, all using their $1200 stim checks to get rich quick in the markets. But the collapse will come. It always does.
This chart is like the shoeshine boy giving old man Kennedy stock tips - a sure sign that a major bubble top is very near.
If it has made an impulse up, which it kind of looks like, then that means it is not over yet.
ReplyDeleteCareful. Mania charts are often 5 up and then 5 back down to a lower low.
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