Papafox's Daily TSLA Trading Charts

[Papafox]

Today was supposed to be an up day and it was, but the big question is why wasn't it a higher up day? Part of the answer lies in the low volume. For the most part, longs and shorts have established their positions and are sitting tight, waiting for the ER on Wednesday. Analysts and the media are not speaking about anything extraordinary in the ER, and thus general investors are not really aware of what may transpire. Meanwhile, the shorts may be up to their old tricks. Look at how TSLA stopped short of 204 on its noon rally and see how flat the top of trading was on the 1:30pm rally. I'm thinking shorts sold enough as TSLA approached 204 to keep it below that amount. Now look at the generally horizontal trading at 203 for the remainder of the afternoon. Again, I think this is likely capping behavior by the shorts. The good news is that when TSLA starts to run up, it goes nearly vertical until it reaches a top. Look at the slope of the trading right after open and at the 11am rally. These near-vertical climbs mean that some traders are very worried about missing the bus if TSLA takes off in an upward direction, and they buy to cover. None of these mini-rallies are supported by significant news from Tesla, though. Once we get significant news from Tesla, I don't think the shorts will have the shares available to cap the climb. Instead, it will perhaps astonish onlookers if the news is good enough. I believe Musk understands that his enemies are doing some strategic trading to avoid TSLA climbing above significant trigger points, such as 215 to 217 right after the delivery numbers were released. Those efforts on capping TSLA SP should fall apart if Tesla delivers the kind of ER that we all hope for.

Conditions:
* Dow up 77 (0.42%)
* NASDAQ up 52 (1.00%)
* TSLA 202.76, up 2.67 1.33%)
* TSLA volume 2.7M shares
* SCTY 19.95, down 0.04 (0.20%)
* Oil 50.43, down 0.09 (0.18%)

 

[Papafox]

Ho-hum, 'tis the day before a likely-epic ER and volume is at a mere 2.4M shares, with shorts and longs pretty much situated for the big day and just twiddling their thumbs. OK, Chanos had to go on CNBC and bad-talk Tesla enough to drop the stock a bit in the afternoon, but those games are not going to have the same effect after Wednesday's ER. Ambiguity about Tesla's future and low volume are necessary for such games to succeed.

Where are the speculators, buying TSLA this week to make money on the ER, you ask? The media handling of TSLA and the SCTY merger have muddied the waters to the point where a casual observer does not understand what is likely to happen on Wednesday. Thus, we have a wait and see attitude. Elon's job over the next 10 days will be to clarify the waters and show that Tesla with SCTY in tow will be able to no only launch Model 3 on time and with money in the bank but will be profitable in the near future in core operations and will be very profitable in the long run with the extended operations that include SCTY products integrated into Tesla's offerings.

For tomorrow? Usually the day of the ER is a down day as traders take gains from the run-up to the ER, but this ER is different because of no real run-up. Some members of this forum plan to buy on Wednesday, which suggests last-minute buying is probably likely and a green day is possible.

Conditions:
* Dow down 54 (0.30%)
* NASDAQ down 26 (0.50%)
* TSLA 202.34, down 0.42 (0.21%)
* TSLA volume 2.4M shares
* Oil 49.8, down 0.72 (1.43%)

 

[Papafox]

3Q ER day is here. Notice the shifting between bear and bull throughout the normal trading hours. Elon and Jason's job is to remove some of the question marks and bring investors to a calmer realization that good things are in store for Tesla. Here's a short summary. I'm at the airport about to board, so please pardon the brevity. We now want to see how much of a positive this ER is and if the coming events can build upon today's gains.

Conditions:
* Dow up 30 (0.17%)
* NASDAQ down 33 (0.63%)
* TSLA 202.24, down 0.10 (0.06%) (but look at after hours!)
* TSLA volume 5.6M shares
* SCTY 19.99, up 0.27 (1.37%)
* Oil 49.24, up 0.06 (0.12%)

 

[Papafox]

It's fair to say that the shorts are still confident, even after Tesla's excellent Q3 ER. Today we saw the battle ignite anew, with a dip right after opening, a climb above 213, and then a series of steps downward to giving up all gains from the ER before recovering a few dollars. Nobody said that being a Tesla long was easy. About half a million shares were apparently shorted today, judging from the change in available shares at Fidelity, and others may have come from elsewhere. What's remarkable is that the same price topping strategy (keep TSLA below 214) that was used after the Q3 delivery number release was used again today. Even with 13M shares trading hands today, shorts could hold TSLA below 214 with less than half a million shares, and when longs and shorts alike saw that TSLA wasn't climbing any higher, shorts held firm (or added to their holdings) and weaker longs sold.

Hoping that shorts run out of available shares is likely not a good strategy, since brokerage companies can generate additional shares if they like by tapping unused supplies. A better strategy will be for Elon to keep the good news coming with the Friday solar-roof, Powerwall/pack 2.0 and new charging show. If Tesla can indeed persuade investors next week during the Nov 1 event that SCTY will not be a substantial drag on Tesla during 2017, then I think the SP can resume a climb.

Make no mistake about it, Tesla is in a war with many media outlets that want to say "I told you so" if Tesla stumbles and with well-funded short sellers who are willing to spend large sums to protect their current investments. Fortunately, Musk knows what's going on too, and he scheduled these events close together to beak the manipulative grip that the foes of Tesla have on the SP at present. With enough good news, the stock can indeed begin its march back up.

Conditions:
* Dow down 30 (0.16%)
* NASDAQ down 34 (0.65%)
* TSLA 204.01, up 1.77 (0.88%)
* TSLA volume 13M shares
* SCTY 20.65, up 0.66 (3.28%)
* Oil 49.62, +0.44 (0.89%)

 

[Papafox]

Lots has been going on today. Up through 1:00pm we saw TSLA shrug off the morning short attack and enter the green. Those thin tentacles in the morning stretching downward are big sales which were immediately overruled by the market. This behavior is a positive indication for the stock and normally would portend a good Monday. However, the situation changed at 1:00pm when the FBI announced a renewed probe against Hillary Clinton regarding emails. Although the broader markets fell a bit after this news, TSLA fell more, most likely because TSLA is a clean-energy company and Clinton's views are significantly more clean-energy than Trump's. At the end of the day, I suspect shorts jumped in to add to the losses with additional selling (since few investors were in a buying mood at this point) and with the help of the shorts the SP closed 3 cents under $200 for the week. Again, a close just pennies below a whole number is a nice clue about the SP getting a push down by the shorts in the final minutes.

Personally, I was busy this afternoon converting some Jan17 ITM calls to Mar17 ITM calls. With the added questionmark about the presidential race, I bought some insurance by allowing my calls to include the Q4 ER.

Looking forward to the solar presentation this evening. Unless something earthshaking is revealed, the event may not move the SP much, but I think the November 1 SCTY financial discussion could be a nice catalyst. OTOH, TSLA at 200 is poorly priced, given the extent of the good news and guidance lately, and Musk may choose to let some attractive cats out of the bag tonight. Hoping so.

Conditions:
* Dow down 8 (0.05%)
* NASDAQ down 26 (0.50%)
* TSLA 199.97, down 4.04 (1.98%)
* TSLA volume 4.2M shares
* SCTY 20.53, down 0.11 (0.53%)
* Oil 48.72, down 1.00 (2.01%)

 

[Papafox]

Today was a repeat of an old story... TSLA up in pre-market trading as small traders anticipate a gain following Friday's impressive solar roof and Powerwall 2.0 demo, then the stock dips sharply right after open. I believe that some of this dip was caused by short-selling to avoid a price rise following the weekend's good news, but other possibilities exist, too. One is that SCTY fell by 4% today. Since nothing new suggests that the deal is in jeopardy, we could see traders who made money on the run-up in SCTY over the past few weeks taking money off the table prior to the big discussion on Tuesday about SCTY finances. This exit would encourage some TSLA shareholders to sell TSLA in order to buy SCTY, due to the improved arbitrage possibility. This movement by TSLA shareholders to SCTY may spill over into tomorrow's trading as well.

The good news is that the SCTY discussion after close on Tuesday may well have a positive material effect upon TSLA's price. The quarter Q3 is an exceptionally important one for SCTY, due to the upcoming merger, and I suspect Musk and his team have been working with the SCTY team to ensure a positive quarter, just like we saw at TSLA recently.

Also note that oil fell today too.

Conditions:
Dow:down 19 (0.10%)
NASDAQ: down 0.07 (0.02%)
TSLA: 197.73, down 2.24 (1.12%)
TSLA volume: 4.7M shares
SCTY:19.60, down 0.93 (4.53%)
Oil:46.72, down 1.98 (4.07%)

 

[ggr]

Oil down 4% might also have knocked TSLA around a bit. There are still people out there who think cheap oil will kill EVs.

 

[GoTslaGo]

Oil down 4% might also have knocked TSLA around a bit. There are still people out there who think cheap oil will kill EVs.

So maybe a pop tomorrow partly related to this?

Largest U.S. Fuel Pipeline Shuts After Work Crew Triggers Blast

"December gasoline futures rose as much as 21.56 cents, or 15 percent, to $1.6351 a gallon, the biggest intraday gain for an active contract since 2008. The New York Mercantile Exchange contract, which is for supplies delivered into New York Harbor, traded at $1.5775 at 1:37 p.m. Singapore time."

 

[Papafox]

TSLA trading chart

SCTY trading chart

Today the broader markets fell and both TSLA and SCTY followed them in exaggerated fashion. In after hours trading both stocks headed higher after the SolarCity event post came out and during questions and answers indicating general approval of the material presented, but once the event was over we saw a fairly large drop. One can assume either manipulation of the stock price after the event or one can interpret the results as disappointment that the call didn't dive into the numbers more thoroughly and show how the combined company is going to reach Model 3 ramp-up with sufficient cash in reserve. Part of the problem here is that the SCTY Q3 ER is not until next week and there was an effort to not bring in SCTY-specific data that will be covered in the ER. This is a shame because the event turned out to be much less than it could have been. For example, what type of cash flow can we expect from SCTY and TSLA between now and the beginning of Q4, 2017? Analysts and investors are hungry for numbers to demonstrate that the combination of these two entities is going to weather the storm ahead.

I'm particularly fascinated by the price action on SCTY, because it is illogical. The event gave strong credibility to the likelihood of a successful merger, and this event should have lifted SCTY, as we saw during the event (but not after). My best guess is that we are seeing manipulation of SCTY by shorts with the aim of scuttling the deal. A byproduct of this manipulation is that some TSLA shareholders sell their shares and move to SCTY to take advantage of the bargain. Thus, the shorts win on both accounts. Also, the manipulation does somewhat add risk to trading on the SCTY side of the arbitrage equation if you believe the deal is not 100% guaranteed if further degradation of stock prices take place, followed by some type of negative election macro event, and so some restraint in where you place your money may be of value too.

The good news is that Tesla and the combined Tesla/SCTY looks viable through Model 3 ramp-up and extraordinary beyond that date. The picture of a combined Tesla and SolarCity is far more attractive in this presentation than what analysts have been depicting. With the coming election question marks and with continued efforts by certain parties to rain on the SCTY deal prior to the final vote, we likely have a few weeks of tough sledding ahead. The good news is that once the SCTY deal is completed and the questions start to get answered, the stock price can recover. Tesla appears to have a brilliant future ahead, but please avoid temptations to bet on the short term stock movement.

Conditions:
* Dow down 105 (0.58%)
* NASDAQ down 36 (0.69%)
* TSLA 190.79, down 6.94 (3.5%)
* TSLA volume 7M shares
* SCTY 19.07, down 0.53 (1.00%)
* Oil 46.35, down 0.51 (1.09%)

 

[Papafox]

Today TSLA showed surprising strength on opening, given the negative pre-market trading. Clearly, some investors were moved by yesterday's Economics of the SolarCity Acquisition talk. That number of investors wasn't large, but the positive results from a talk lacking many of the details hard-core investors sought gives an indication of just how much misunderstanding is out there regarding the SCTY acquisition. The NASDAQ drifted lower throughout the day, otherwise TSLA may have closed in the green.

The big weight on the broader markets and TSLA at the moment is the uncertainty of the election results. The dark horse is gaining ground in the final week, and so it is best to have a plan in mind for either outcome. My personal feelings is that Tesla products make sense and will sell at profits no matter who is elected, but HRC obviously would help TSLA more than the other candidate.

Since the broader markets can drift lower as the election nears, we may see more of the same. I'd love to see a neutral macro day soon, though, the get a feel for how TSLA will trade in that environment.

Conditions:
* Dow down 77 (0.43%)
* NASDAQ down 46 (0.93%)
* TSLA 188.02, down 2.77 (1.45%)
* TSLA volume4.2M shares
* SCTY 18.62, down 0.45 (2.36%)
* Oil 45.64, up 0.3 (0.66%)

 

[Papafox]

Today we had more of the same as yesterday. TSLA went higher on opening, but was dragged down throughout the day by a declining NASDAQ. Today's performance from TSLA was improved from yesterday's though, because TSLA remained in the green for most the day and lost only about a third of its value compared to the NASDAQ. TSLA wants to go higher, it just needs some cooperation from the broader markets. The broader markets are focused on the election and giving an unusually pessimistic view. As long as no drawn-out drama ensues with the election, I suspect the broader market will be ready to give a sigh of relief and recover some of its losses if HRC wins. If Trump wins, there'll be a dip and then a recovery. In fact, I would go so far as to say that part of the reason for losing the substantial gains the day after the 3Q ER was that many investors, including myself, had a plan to take some of the profits off the table prior to the turbulence of the presidential election and the merger vote. When too many people have the same plan, it can play out very quickly. Thus, the decline had more to do with fear of the unknown than fear of known issues with TSLA.

Tomorrow Elon has an interview with Cramer. This interview will likely move the SP, so stay tuned. In particular, Elon should mention that production in October was respectable but shipments to Europe caused lower-than-normal U.S. deliveries in October. Here's a perfect opportunity to counterbalance recent FUD. It's also an opportunity to slip in a 2200 vehciles/week or 2300 vehicles/week production rate if that's what Tesla is producing at the moment. Wall Street is hungry for details, not generalizations.

Conditions:
* Dow down 29 (0.16%)
* NASDAQ down 47 (0.92%)
* TSLA 187.42, down 0.60 (0.32%)
* TSLA volume 2.6M shares
* SCTY 18.55, down 0.07 (0.38%)
* Oil 44.62, down 0.72 (1.59%)

 

[ggr]

I think the shorts ran out of ammunition at the end of the day. Usually the price would have ended a few cents below the $190/$20 mark.

 

[Papafox]

What I find fascinating is how the stock price performance of the previous days has given strong clues about what TSLA SP will do today. On Oct28, the day after the ER results were traded, the SP traded both green and red with a big red downturn at the end. Translation? We were transitioning from green to red. On Monday and Tuesday of this week TSLA continued trading in the red, but on Wednesday, it traded up and down with two portions in the green before turning red again. Translation? TSLA was in the process of transitioning from red back to green. On Thursday TSLA traded well in the green but only went red at the end of the day, still outperforming the NASDAQ, and today we saw a very solid green performance. I particularly liked the upturn in the final 20 minutes of trading. These upturns at the end of a Friday often bode well for opening on Monday. I do add my caution that the election trumps all (pardon the expression) until after Tuesday.

Adding fuel to the bulls is the fact that availability of shares to short is low and even though the shorts drew down available shares today, TSLA enjoyed a nice morning ralley and sustained the majority of that rally. Bottom line: the shorts are losing the ability to steer TSLA's SP.

The biggest news today was SCTY's gain of 8.79%. This is an important event for TSLA traders because it reduces the number of TSLA buyers who would buy on the SCTY side on Monday instead of the TSLA side. Looking at the numbers from yesterday:
SCTY 18.55/.11= 168.64, (187.42-168.64= 18.78/187.42= 10% arbitrage gap. Now look at today:
20.18/.11=183.45, (190.56-183.45=7.11/190.56= 3.7% arbitrage gap.

Conditions:
* Dow down 42 (0.24%)
* NASDAQ down 12 (0.24%)
* TSLA 190.56, up 3.14 (1.68%)
* TSLA volume 5M shares
* SCTY 20.18, up 1.63 (8.79%)
* Oil 44.07, down 0.59 (1.12%)
* News events: Musk speaks on CNBC with Ron Baron. Run up in price before the talk could be reason for morning rally
ISS gave thumbs up to TSLA/SCTY merger from both vantage points
Glass Lewis gave thumbs down to TSLA/SCTY merger, but dip afterwards (about 2:35pm) was very small

 

[adiggs]

I'm not sure I agree with the comment "shorts are losing the ability to steer TSLA share price", at least based on the shares available to be shorted.

At Fidelity, there are 0 shares available, but the interest rate to borrow shares is 1%. My own shares haven't been borrowed from me by Fidelity to lend out, and I generalize from my own condition to guess that Fidelity is lending out shares that it owns itself, or that it can get without paying any interest to get them. Thus I believe there is a large enough pool of shares available to be borrowed should those that want to be short want to get the shares.


It may well be they are losing their WILL to steer TSLA's share price, maybe because they're seeing little potential downside from the 190 area, and a lot of potential upside. I wouldn't want to sell the shares short at this level either!

 

[Papafox]

I'm not sure I agree with the comment "shorts are losing the ability to steer TSLA share price", at least based on the shares available to be shorted.

At Fidelity, there are 0 shares available, but the interest rate to borrow shares is 1%. My own shares haven't been borrowed from me by Fidelity to lend out, and I generalize from my own condition to guess that Fidelity is lending out shares that it owns itself, or that it can get without paying any interest to get them. Thus I believe there is a large enough pool of shares available to be borrowed should those that want to be short want to get the shares.


It may well be they are losing their WILL to steer TSLA's share price, maybe because they're seeing little potential downside from the 190 area, and a lot of potential upside. I wouldn't want to sell the shares short at this level either!

Adiggs, your points are well taken. When I say shorts are losing the ability to steer TSLA, I am painting with a broad brush. Yes, the will to increase a short position right now is an important factor in TSLA starting to turn upward at the moment and yes, I see the limited room for SP drop right now as being out of proportion with the potential rise that can take place in the near future.

Regarding Fidelity's 0 shares available to short right now, I suspect Fidelity is limiting the number of shares to short on any day because they do not wish to add too much instability to the stock. I've heard from other longs as well who are trying to make their shares available but they're not being taken by Fidelity and handed over to shorts. Again, I see this as a controlled re-release of short shares after the recall, and I think Fidelity is acting responsibly. From Fidelity's standpoint, too much shorting and then a fast run-up in the SP could put quite a few shorts in margin-call territory and a smaller number of short shares out there right now would minimize Fidelity's headaches if there is a rapid run up in SP. Fidelity funds also own millions of shares of TSLA and SCTY, and a controlled re-release of short shares makes sense from the standpoint of their portfolio valuations. The last thing Fidelity needs right now is a huge short-selling effort by enemies of TSLA right around the time of the merger vote. By limiting shares available to short, Fidelity is limiting the extent of manipulation that is possible. If Fidelity was artificially limiting supply of TSLA shares to short and also charging a high interest rate, the firm would be vulnerable for criticism for its practices. By controlling the roll-out of new shares to short but keeping the interest rate low, I think FIdelity has struck a workable balance between the needs of both Tesla the company and the desires of the shorts.

 

[3Victoria]

Ulimately, Fidelity is responsible for the shared out stock. If the borrowers cannot cover, then Fidelity would need to cover, and could consievably be expensive.

 

[Papafox]

What a textbook example of short-seller manipulation we had today. The day began with optimistic pre-market trading of TSLA around 194. The only reason people buy pre-market at more than $3 above closing is that they expect the SP to go even higher. Everything was set for a stellar climb: TSLA is historically at a bargain price, news is positive from TSLA over the past few weeks, TSLA climbed at the end of trading on Friday, Amateur hour of Monday is historically a time for new buyers to enter, and most importantly, the candidate who is most favored by the market and is also known to be particularly focused on climate change and clean energy, that presidential candidate went way up in expectations of winning over the weekend. As a result, the broader markets climbed more than 2% and clean energy stocks such as SCTY were up more than 3%. This should have been TSLA's day to climb. Yet @vgrinshpun reported that at 8:45am there was a 347,000 share drawdown of available shares to short and on opening we saw not the vertical climb but instead saw more than 140,000 shares sold in the first 8 minutes, which dropped TSLA down so that it dipped its toe in the red-zone momentarily. TSLA resisted this dip and climbed back up, but when it hit 194 it plateaued for a few minutes before dropping. By 1:00pm, TSLA was climbing again, but when it hit about 193.30 it leveled off and stayed level. A brief dip allowed the horizontal trading to shift to 193. Towards close, a dip transitioned into a climb and TSLA climbed above 183 before quickly being pulled back down.

Normal trading for a volatile stock? Nope, not even close. There was no bad news on open, no valid reason for TSLA to plunge. If a big investor had wished to shed shares today, he would have allowed the share prices to zoom up in the morning and then slowly fed his shares to the hungry buyers throughout the day. The only reasonable explanation for the opening plunge was a big deployment of new short-selling aimed at curbing a runaway climb of TSLA today. The shorts were hanging tough, spending money to protect their current position. The horizontal trading of the afternoon is classic topping behavior by deep-pocket shorts. Want to see another example to horizontal trading that is topping behavior? Check out the October 3 trading, right after Q3 delivery numbers were announced.

So, how do we as investors deal with this kind of short-selling behavior? First, here's the good news: TSLA has been manipulated in a skillful and heavy-handed way by deep-pocket shorts for months now. The morning dips, the topping behavior when critical price points are going to be reached, the selling in the late afternoon low-volume times, this is all classic short-seller manipulation. Short-selling will naturally depress the stock price, due to the additional selling that takes place as the number of short-sellers increases. The kind of methodical short-selling with a purpose we've seen, however, has considerably more ability to depress a stock price. In other words, TSLA is trading considerably lower right now then it would without this heavy-handed manipulation. What this tells me is when the shorts start to bail, it'll be one heck of a squeeze. The upward potential of TSLA is ferocious once the hold of the shorts can be shaken off.

The bad news is that we don't know exactly when the shorts can be shaken. Until that moment happens, it is mighty difficult to anticipate events such as this Monday, Q3 delivery numbers day, or the day following Q3 ER, which all should have been much more positive than they were. Please avoid the temptation to invest in the short-term, because quite frankly we're not playing a fair game at this time. Please do realize that TSLA is likely to succeed and the SP appreciation once the hold of the shorts is shaken could be tremendous.

Here's a short list of events that have some potential to shake loose the hold of the shorts:
* HRC wins the presidency AND the number of shares to short is minimal at Fidelity and other brokerages
* The TSLA/SCTY merger is approved and efforts to depress the stock are unsuccessful.
* Big institutions start adding to their TSLA holdings again as the share price starts to rise and the merger is completed
* Q4 Delivery numbers come out and Tesla lets the cat out of the bag early that the company will be GAAP profitable again, but this time without the help of ZEV credits
* Model 3 vehicles start rolling off the assembly line in substantial numbers.

Conditions:
* Dow up 371 (2.08%)
* NASDAQ up 119 {2.37%)
* TSLA 193.21, up 2.65 (1.39%)
* TSLA volume 3.9M shares
* SCTY 20.53, up 0.35 (3.21%)
* Oil 44.78, down 0.11 (0.25%)
* News: Over the weekend, HRC pulled a few points ahead and escaped FBI wrongdoing charges
- Tesla announced that unlimited free supercharger access will no longer be available in vehicles ordered after Jan 1, 2017 or not delivered by April 1, 2017.

 

[zdriver]

What a textbook example of short-seller manipulation we had today.

Bit of interesting supporting data - short volume was almost 70% on Monday - considerably higher even than near/after earnings.

http://www.shortanalytics.com/getshortchart.php?tsymbol=tsla

 

[Papafox]

TSLA trading chart: Nov 9, 2016

SCTY trading chart: Nov 9, 2016

Ever wonder what would happen to TSLA and SCTY stock prices if Trump won the election? We found out today. The biggest surprise was the broader markets shifting from deep red in futures to up over 1% at close. We saw a panic in pre-market and on opening for both SCTY and TSLA. I hope all of you saw my post in the short-term trading thread last night, stating that the sky was not falling. For those traders who sold SCTY in pre-market at 18.83, they sold at a full 7.5% below sellers who waited for 20.25 in after hours trading, following the release of SCTY's 8K.

Trump is a combination of good and bad for Tesla. On the one hand, he's for lower corporate taxes and has a pro-business focus. It is possibly that GDP could grow quite a bit faster with him as president, which could help people afford to buy Tesla vehicles and energy products. His will take a very nationalistic approach which focuses on revving the American economy by removing obstacles for businesses and cutting taxes to stimulate the growth of GDP. On the other hand, he has no interest in adversely affecting any companies in order to follow the Paris Accords or tackle global warming. Say goodbye to any thought of a carbon tax.

Despite the Trump thumbs up to gas, oil and coal extraction and use, I do not expect policies that directly attack Tesla. Why? Trump is pro-money (at the expense of the environment), and being pro gas, oil, and coal is only an offshoot of his let's all make as much money as we can attitude. Tesla is a poster child for success as an upstart American auto manufacturer, and such a company fits well into his view of what's good for America. He's not like the Democrats who promoted clean energy through both incentives and through restrictions to using fossil fuel. Think of Trump more as an "anything goes" businessman rather than someone who is reigning in certain sectors in order to promote other sectors. It's all about raising GDP, which allows lowering of personal and corporate taxes. In other words, it's all about the money so that we can cut taxes and pocket even more money. That's the mentality we're going to see. The effect of all this activity on the environment doesn't register on his list of important things to consider.

Many of us dislike the priorities of this administration, and you may have chosen to cast your vote for the other party. Now that the election is over, though, one needs to divorce your views of the attractiveness of a government versus its affects upon the stock price. Otherwise, your personal distaste for a man's politics will adversely affect your ability to objectively view the profit opportunities ahead with Tesla, which remain immense.

SCTY's 8K showed a 48 cents/share GAAP profit and non-GAAP performance that was just a smidgen better than analyst expectations. This performance by SCTY in Q3 bodes well for completing the merger in little over a week. Getting the election and the merger behind Tesla are both important in order to see the stock price start climbing again. Big institutions have been holding off buying, likely waiting for the merger date to come and go so that they have a better idea of what they are buying. Once the big institutions start buying again, they will overpower the games we've seen lately from the shorts, and TSLA will be free to climb again.

Conditions:
* Dow up 257 (1.4%)
* NASDAQ up 58 (1.11%)
* TSLA 190.06, down 4.88 (2.50%)
* TSLA volume 8.2M shares
* SCTY 20.01, down 0.84 (4.03%)
* Oil 45, down 0.27 (0.60%)

 

[GoTslaGo]

Thanks @Papafox for posting SCTY and TSLA. I've been noticing how closely their price patterns have been tracking... almost as if they're one company already. One can also see it on the daily candlesticks for both companies, Very close.