I want to like TSLA, I want to be that guy that bought it as it broke out to new highs but I can’t. This stock is all technicals and chart and no fundamentals nor will it have any for a very long time. This is the definition of a bubble and the madness of crowds. The volatility on the chart also shows that day traders and high frequency traders are key players. As long as you trade price and get out before the music ends you can do okay but when you start believing the hype about this as an ‘investment’ you will have a bad time. Congratulations to all the crazy bulls that stubbornly held on but this is not real, this price level is built completely on hopes, beliefs, and potential growth in the future. People getting in now are very late to this bull party.
TSLA’s fate rests with its ability to stay above the 20 day. TSLA is a purely speculative play without real earnings. It is not an investment and not a monster stock. In every bull market cycle the stocks that launch and never look back are companies with real earnings and huge growth that are changing the world. MSFT through the nineties along with INTC and AOL up into March of 2000. AAPL RIMM and GOOG through 2o04-2007 and again AAPL GOOG and PCLN in 2012 along with many other examples throughout history like HD and WMT. I have been involved with many monster stocks and TSLA is no monster stock yet. It is part of Elon Musk mania and without real earnings to support an $11 billion market cap this will end badly. I have bought many breakouts and held for huge gains and this is not what a strong chart looks like, it is the picture of indecision and many weak hands. If you are playing this to the long side I would be a seller when it loses its 20 day support. The TSLA price has gotten way ahead of itself here.
