SHORT squeeze $380/share

Discussion in 'Tesla' started by bwilson4web, Dec 17, 2019.

  1. bwilson4web

    bwilson4web Well-Known Member Subscriber

    I noticed a distinct buy today just before 1 PM. If a SHORT holder was trying to get out of their position, the SHORT would have an automated buy order looking for a local dip in the price. The pattern fits.

    Bob Wilson
     
  2. The more interesting trades were at the open, when there were some obvious large buy orders. But didn't take long for the shorts to step in at that point, and the stock dropped pretty steadily to 1 PM, the point you cite, when the short sellers cashed out. Looks like they did pretty good with that run, with stock dropping nearly $10 from its high to the 12:30 PM low.

    Having said that, the stock has had a very good run the last few days, and interesting to see how long this streak will last. The buying strength has been mostly on the open, which also presents great opportunities for the short sellers. So everybody can make money with this kind of action.

    When I day trade, I like to pick highly volatile stocks, but ones that better follow the market, not the company news/rumours. So TSLA is out for me, at least for now. But I will keep watching it. Right now, though, it looks like more of a shorting opportunity than a long buy, esp with day trading.
     
  3. bwilson4web

    bwilson4web Well-Known Member Subscriber

    I'm in a delightful dilemma:
    • Take TSLA profits in 2019 but inflate income tax (thanks SHORTS!)
    • Take TSLA profits in 2020 as the income tax resets
    Bob Wilson
     
  4. Take profits now, and then buy back and take more next year. Assuming you will do at least as well next year. And try to at least sell at resistance level, and then buy back at the support. Look at the bouncing ball, and catch it early for both the sells and buys.
     
  5. bwilson4web

    bwilson4web Well-Known Member Subscriber

    I put a small, sell order for $420, for 60 days. If it completes, I'll send a copy to the SEC with a cover note,"FINANCING SECURED!"

    Bob Wilson
     
  6. If it does, will see if EM can keep his mouth shut..haha. Wouldn't it be a shock though, if he did and then announces later (legitimately) he is taking the company private. More likely, if the stock gets up there and higher, he will use that opportunity raise more money through another stock offering. Year end is always when big things happen. So we'll see in a couple months. The trick now is to hang onto the stock surge, and expect to see many more "good" news announcements in the next month.
     
  7. bwilson4web

    bwilson4web Well-Known Member Subscriber

    The following order executed on 12/23/2019 at 10:52 AM, Eastern time:

    Account: ****
    Transaction type: Sell
    Order type: Limit
    Security: TESLA INC (TSLA)

    Quantity: *** share(s)
    Price:* $420.00

    Dear SEC,

    FUNDING ASSURED!!

    Bob Wilson
     
    R P likes this.
  8. You did well! And you get to spread your taxes... Hopefully you get a good buy point again for the new year.
     
  9. bwilson4web

    bwilson4web Well-Known Member Subscriber

    I’m fairly sanguine about the prospects of lower stock prices.

    I noticed the Fremont manufacturing manager is leaving which could be a bad thing unless he is replaced by someone in-house. The school of Musk is better than any MBA school and leads to a lot of former Tesla employees in potentially future competition. Now they are motivated to perform on their own.

    Bob Wilson
     
    Last edited: Dec 24, 2019
  10. bwilson4web

    bwilson4web Well-Known Member Subscriber

    Sage advice for the long term, TSLA investor: https://ww.electrek.co/2019/12/28/tesla-ignore-stock-price-tsla-elon-musk/

    In an email obtained by Electrek, CEO Elon Musk tells Tesla employees to “ignore stock price” as it soars to new highs in a market rally. Over the last few weeks, Tesla’s stock price blew past its longtime all-time high to over $430 per share.

    Musk addressed the recent rally in an email titled, “Please ignore stock price,” which was sent to Tesla employees and obtained by Electrek.
    . . .
    Many people didn’t believe anyone would buy Tesla at $420 and the Securities and Exchange Commission even ended up imposing a fine on Musk for what they believe was an exaggeration when he said that the funding was “secured” at that price.

    Even though Tesla’s stock has now soared past that price to new highs, the CEO told employees that he thinks it will be “worth considerably more”:

    But I'm anti-SHORT and will keep my put price high. I'm out to spank them.

    Bob Wilson
     
  11. bwilson4web

    bwilson4web Well-Known Member Subscriber

    I noticed:
    cowen_010.jpg
    When Elon tweeted $420 about TSLA stock price, the SEC leap in to fine him and Tesla. But this TSLA short who makes money by 'talking down' Tesla, remains ignored by the SEC. In 2-3 days, we'll see the Elon preliminary numbers and 5-6 weeks later, the official financials. If as expected, Tesla has good numbers and the stock price recovers, perhaps the SEC needs a complaint letter?

    Actually it could have been a SHORT slap like in the classic movie, Airplane:
    [​IMG]
    This may be an attempt to stop the SHORT-squeeze panic.

    Bob Wilson
     
  12. Say what you want, but you can't ignore the fact the book value of TSLA is about $29 per share vs stock price of $420. GM's book value is $28 vs stock price of $36. And TSLA's market cap is higher now than GM's. GM is profitable, TSLA is not. A qtr doesn't count. Need full year audited SEC filings to determine that.

    In other words, TSLA's stock is priced for perfection. And you wonder why it is a shorter's dream?
     
  13. bwilson4web

    bwilson4web Well-Known Member Subscriber

    No wonder on my part. Vulture capitalism is alive and prospers. Just they never make anything or jobs except for the folks on the curb waving ‘Closing’ signs.

    Bob Wilson
     
  14. Not sure what you are suggesting, socialism? Seems to me capitalism has worked pretty well in America and the free world (despite the push towards socialism). Markets provide capital for companies to develop and grow. There would be no Tesla without capitalism. But it also keeps companies honest, and if they are duds or fraud, they will lose or go under. Not so with socialism which breeds corruption and only the govt elite and their cronies prosper.

    Of course there are winners and losers with capitalism. But the net is everyone can win, just need to adapt. Don't have to be a loser forever.

    What I don't like though, is how govts (incl the US) have acquired huge debt to juice the economy and encouraged low interest rates to service their debt. Printing money is OK temporarily, but should not be the primary method of generating GDP (as what happened after 2008). I wish they would take out the effect of govt on GDP measurements. True GDP should be based on non govt activity, and not on taxes given to them from private enterprise activity. In other words, if you look at a nation's economic activity as a whole (single enterprise), govt activity should only be considered as an expense, and private enterprise activity as income. Cutting back govt and supporting free enterprise more is the only way out of this current deficit and debt situation.

    Not saying we don't need govt services, and the irony is that more capital and individual wealth actually will support more and better govt service (ie social programs and infrastructure) that helps everyone, incl the poor.
     
  15. bwilson4web

    bwilson4web Well-Known Member Subscriber

    The high TSLA price is keeping the vultures away. They know the price is way higher than they can justify. Especially because they are not Elon Musk.

    Without Elon, Tesla assets would be worth scrap and the subsequent unemployment cost eat that 10 times over.

    There are somethings even a vulture won’t eat.

    Bob Wilson
     
    Last edited: Dec 31, 2019
  16. bwilson4web

    bwilson4web Well-Known Member Subscriber

  17. bwilson4web

    bwilson4web Well-Known Member Subscriber

    Called stock diversification:
    • Sold 10% of TSLA at $420 (mostly to stick it to the SEC)
    • Sold second 10% TSLA at $462 (mostly to stick it to SHORTs)
    • Bought gold mining shares at $45
    It is nice to take profits and put them in a safe place. Actually a growth industry while 'wag the dog' is going on.

    Bob Wilson
     
    Last edited: Jan 7, 2020
  18. bwilson4web

    bwilson4web Well-Known Member Subscriber

    Recent history:
    • Jan 8 - peak ~$499
    • Jan 10 - closed ~$481
    • Jan 13 - closed ~$524 (increased my put from $560 to $595)
    To see a $524 - $481 = +$43 between Friday and Monday meant my "put at $560" was at risk of executing in a one day rise. In the morning, I may jump it up to $646, doubling my original investment.

    Bob Wilson
     

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