Today the macros had a strong day, complete with a positive opening, and the hedge funds (worried about 260 and 265 call options they sold that expire on Friday) began TSLA trading with a flurry of selling to induce a mandatory morning dip. At 9:31am we saw 39K of selling and at 9:32am we saw 35K. This type of MMD on open is become standard procedure for days when the macros are strong and the manipulators wish to tell traders, "you're not going to make any money here today."
Nonetheless, by 10:15am TSLA was starting to poke its mischievous little head up into the green, which necessitated a game of whack-the-mole, which gradually subsided as TSLA climbed and flirted with 260. Unlike yesterday, however, today's trading had much lower volume (6.3M) and the stock price had reached a level which is more in line with expectations for leading into the 3Q ER next week. Thus, after several attempts at finding weakness in the afternoon, the hedge funds succeeded in pushing TSLA down in the final 10 minutes of trading, despite no negative news no negative macro moves.
Notice the extremely bumpy trading of TSLA today as each peak was met with an immediate selling scenario. I think the hedge funds were being very careful to keep TSLA below 260 so as to not suffer the same fate as when TSLA showed that it had vanquished 250 on Monday morning.
ARK was busy selling some TSLA today, which is part of its buy low, trim high strategy that keeps a single stock from becoming too much more than 10% of its holdings. ARK shareholders are apparently happy with such a policy and ARKK closed up 2.11% today.
A period of consolidation looks likely after TSLA's 7 days in a row green streak. Nonetheless, Model Y sightings continue to freak out the shorts and more covering is possible, which could of course help the stock price.
Both the Dow and NASDAQ climbed today, with the NASDAQ up 1.24% at day's end. A big macro day can often be somewhat neutralized by a strong mandatory morning dip and constant interventions, as needed.
Shorts were tagged with 56.5% of TSLA selling today, indicating a greater willingness to get involved and manipulate after yesterday's strong performance by the stock.
Looking at the tech chart, you can't see it, but the upper bollinger band is at 257.71, very close to today's closing price. While a stock can continue to push the upper limits of the bollinger band and bring it along in the climb (as we saw during the lead-in to the Q2 ER), more often we see the climb lessen to allow the upper bb to rise above it. Many institutional buyers hold off buying above the upper bb, and so TSLA is setting itself up for future climbing if news warrants, after the consolidation is complete.
I also like how the blue 100 day moving day moving average is tilting upward for a run toward the red 200 DMA. When the two cross again, the golden cross will be a welcome signal to tech traders that TSLA is healthy again, technically.
Conditions:
* Dow up 237 (0.89%)
* NASDAQ up 100 (1.24%)
* TSLA 257.89, up 0.93 (0.36%)
* TSLA volume 6.4M shares
* Oil 52.94
* Percent of TSLA selling tagged to shorts: 56.5%