Let's talk about Tesla.
Because Tesla has gone absolutely
crazy. Today, July 13th,
Tesla was up 18%
for the day.
Look at this, so, this morning,
Tesla was up 18%,
and now it is down
16%.
I mean, wow,
what is happening with Tesla
here? So this is the key question
that many people are asking me right
now, "Should I buy Tesla
or should I sell it?" So I thought,
"Hey, I might give you my
analysis." So let's take a look
at Tesla, I'm going to reset the
chart. And as you can see, over
the past few days, Tesla
has been skyrocketing higher.
So why is this?
Well, because there is
the possibility that Tesla
will be included in the S&P 500.
Thus far, Tesla has not been
in one of the major indices for a
very simple reason.
Tesla never had
four consecutive months with
profits.
And this is one of the prerequisites
for being included in the S&P
500. But now Tesla
had three consecutive months with
profits, and when they get a
fourth-quarter, they can be included
in the S&P 500, and then
some big hedge funds can pick up
Tesla.
Because here's how it works, you
see, when you're a big hedge fund,
you have to say what stocks you are
trading. And if you're saying, "I'm
only trading stocks in the S&P 500,"
you can't buy Tesla.
But we don't know whether they
will be profitable for a
fourth-quarter or not.
Earnings is coming out on July
22nd.
So right now, it's all
speculation.
Well, I have a Tesla
and I love my Tesla but
hey, let's trade what we
see, not what we think.
So let's actually take a look at
Tesla.
And I want to take a look at a
weekly chart here because when
you look at the weekly chart, you
see the full story.
You see how Tesla over the past
few weeks has just been
skyrocketing.
And you see parabolic moves
like this are not sustainable.
Think about it this way, when Tesla
surpassed $1,000 right
here, it became the most
valuable car company
in the world.
You see this is where Tesla beats
Toyota, which has been the most
valuable car company.
And this was at $1,000, and right
now, Tesla is trading
at $1,500, was trading at
$1,700 earlier today.
So right now, Tesla
is worth more than General
Motors, Ford,
and Fiat Chrysler combined.
Now, is this really making
sense? Let's take a look at Ford.
This is what Ford is doing.
Not really a whole lot, because
right now during the pandemic, it's
not that people are buying cars like
crazy. Let's take a look at General
Motors.
General Motors also just hanging in
there. Fiat Chrysler, there you go,
also just hanging in there.
So what makes Tesla
so special?
Well, I said it's all just
speculation. And you see, traders
have been betting against Tesla and
they failed.
Take a look at this, Tesla
short-sellers are down 18
billion dollars this year,
including another 4 billion in July.
But here's the deal.
If you take a look at this, Tesla's
short interest, the dollar
value of all shares sold short
recently hit
19.95 billion.
So Tesla is
the first stock in history
with a 20 billion
dollar bet against them.
So let's go back to Tesla
and let's take a look at the daily
chart here and talk about it.
Is it a buy or is it a sell?
Well, if you look at this,
it's a crazy stock,
that's for sure.
See, option premiums are crazy
high because the past seven
days this stock has been moving
$100 per day
on average, on
average. So sometimes more, as
we can see today.
Let's go back to a 5-minute chart.
So today, as you see, Tesla
was trading at almost
$1,800, it was trading at $1,795
and right now we are down to $1,525.
So today, a move of almost
$200 and from today's high
to today's low, we have a 16%
move. Yes, you could
make a lot of money, and
looking at these swings, you can
also lose a lot of money.
So here's my tip, whenever you see
a parabolic move like
this, leave it alone.
Leave it alone, because you can
get burned and lose a lot of
money and I don't want
that for you.
So, will Tesla go any higher?
Possible. Will Tesla crash and burn?
If they do not announce
a profitable quarter in
the next few days, then yes,
Tesla might drop back down to
$1,200 or $1,000.
Hope this helps. I just wanted to
show you a quick Tesla analysis
here. If you enjoyed this video make
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