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TSLA chart above
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QQQ chart above
What a strange trading day! TSLA was definitely more volatile than QQQ. When both bottomed out around 11:30am, QQQ was down a bit less than 1% and TSLA down more like 2.5%. OTOH, TSLA's rise into the green before 10am was much longer and higher than QQQ's rise. As the 2pm hour passed, TSLA had regained a much higher percent of its dip than QQQ.
All hell broke loose at 3:50pm when TSLA buying when bonkers. Here's a summary by the minute:
3:50pm- 1.5M shares
3:51pm- 0.9M shares
3:52pm- 1.2M shares
3:53pm- 1.1M shares
3:54pm- 1.0M shares
3:55pm- 1.1M shares
3:56pm- 0.9M shares
3:57pm- 1.0M shares
3:58pm- 1.0M shares
3:59pm- missing
4:00pm- 22.8M shares
That's about 32 million shares of TSLA picked up by some organization in the space of about 10 minutes. What catches my eye is how relatively uniform the buying was per minute, as if it was a single entity picking up all those shares. The most mundane explanation would be some big institution was rebalancing on the final day of the month, selling tech stocks and picking up TSLA. AAPL was the biggest loser that I saw, but NVIDIA and other tech stocks felt the selling too. I'm inclined to believe that this buying of TSLA was based on broader criteria rather than just a piece of recent news. We'll find out soon enough.
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Apple's stock (above) and other tech stocks took a hit exactly when TSLA rose in the final 10 minutes of market trading.
News:
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Electrek says Elon is in Shanghai and is rumored to be seeing the new (Highland) version of Model 3 at the factory on Thursday. Fingers crossed there's a photo for the rest of us.
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Electrek also says that Tesla megapacks will power a $500 million energy storage project in Arizona
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Percent of TSLA selling tagged to shorts zoomed back up to 65% on Wednesday. Clearly, there are shenanigans underway to get TSLA to pause its rather relentless climb higher since the annual shareholders' meeting.
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Yields on 10 yr. treasury bonds closed at about 3.67% on Wednesday
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TSLA Max pain continued higher (as expected) to 190 by Wednesday morning. Two developments are particularly interesting. First, look at all the big call walls growing above 200-strike compared to Tuesday's chart. Secondly, the put-to-call ratio actually rose on Wednesday, meaning that puts grew slightly faster than calls. Looking at the puts that have grown, though, you can see big walls in the 100-to110 strike range. These are almost certainly not protective puts but more likely are the kind of puts a trader buys to enable a bigger call position (and avoid a margin call).
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Wednesday's options volumes
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TSLA spent a second day above 200, which helps cement the break above this strong resistance level. The stock has spent more than 2 days above the upper bollinger band now and normally you would expect it to duck back under the upper BB. OTOH, when the stock price is going up or down so quickly that the bollinger band (upper or lower) becomes mostly vertical, the usual rules are not as likely to be followed.
Conditions:
* Dow down 135 (0.41%)
* NASDAQ down 82 (0.63%)
* SPY down 2 (0.55%)
* TSLA 203.93, up 2.77 (1.38%)
* TSLA volume 149.7M shares
* Oil 68.48
* IV 51.6, 17%
* Max Pain 190
* Percent of TSLA selling tagged to shorts: 65%
* Volume at 4pm closing cross: 22.8M shares
