Ok so with trading timing is everything. Lets face it that Micheal Burry from the film "the big short" got really lucky with his housing market short in 2007-8. It's one thing knowing a market will sell off, it's another thing timing it. Fair enough he had to get all those swabs sorted as there wasn't even an instrument to short sub prime back then. Micheal was so early with his trade though that it nearly costs him dearly.
Here he is again lining up his Tesla shorts for ages now as the market has been going higher and higher.
markets.businessinsider.com/news/stocks/big-short-michael-burry-predicts-tesla-stock-price-housing-bubble-2021-1-1029943006
I've been trading TESLA the other way adding to longs again and again while most trader said it cant go no higher! Now we are at a point though that the MACDH on the daily chart has finally trigged an extremely bearish divergence. These extreme divergences work out 80-90% of the time. The Dow had one a couple of days ago and selling has been hard down a 1000 points or so the last day. We have also had Yellen saying "we don't see a lower dollar" last week which has caused the Dollar to strengthen, gold to sell off and equites with it. This is actually the first time Tesla has put in a major divergence like this in several years. Looks like a low risk high reward short to me ahead of the fed this afternoon. Everything depends on them and how much Yellen can really do to stop the plummeting dollar.
I think we can trade short TESLA down to at least the $700 dollar region. Stop at the high of around $902.
Let's see if we can outsmart Micheal Burry a little anyway with our TESlA short timing today.
Here he is again lining up his Tesla shorts for ages now as the market has been going higher and higher.
markets.businessinsider.com/news/stocks/big-short-michael-burry-predicts-tesla-stock-price-housing-bubble-2021-1-1029943006
I've been trading TESLA the other way adding to longs again and again while most trader said it cant go no higher! Now we are at a point though that the MACDH on the daily chart has finally trigged an extremely bearish divergence. These extreme divergences work out 80-90% of the time. The Dow had one a couple of days ago and selling has been hard down a 1000 points or so the last day. We have also had Yellen saying "we don't see a lower dollar" last week which has caused the Dollar to strengthen, gold to sell off and equites with it. This is actually the first time Tesla has put in a major divergence like this in several years. Looks like a low risk high reward short to me ahead of the fed this afternoon. Everything depends on them and how much Yellen can really do to stop the plummeting dollar.
I think we can trade short TESLA down to at least the $700 dollar region. Stop at the high of around $902.
Let's see if we can outsmart Micheal Burry a little anyway with our TESlA short timing today.
Trade active
Huge sell off after the bell, hitting 800 at time of post. That my friends is how you time the epic TSLA short to perfectionTrade active
Here we can see Tsla has made a second attempt to break the wedge/ trend line. Hourly moving averages are still very bullish though so I don't like this break set up. I'm actually taking 30% of my short profits here. We can add to shorts if we get a rally or hourly moving averages turn bearishNote
Adding Tesla shorts with the failed landing of the space x craftTrade closed manually
Ive closed out the rest of this short before the weekend at around break even, Tesla is being very stubborn and the wider market is extremely strong. We could still sell off but technically its not low risk anymore so I'm out and will see what to trade next on Tesla
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.