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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

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Monday will spike, this is the case 95% of the time. Of course *this* Monday might be one of the 5%

I can't predict the rest of the year, but on Tuesday I'll bet my left nut on Friday's close... Can already say it will be below $900, but need the options to re-jig Monday/Tuesday.

Don't get me wrong, HODL is a fabulous strategy, but if you're buying calls, FFS be aware that you're playing the house, and it isn't in your favour.

Hope you dont lose your nut...but if you do, at least you'll have one left! You're $885 is dead on and super impressive! Ive been long TSLA since $410....slowly accumulating on the way up. Volatility at its best!
 
https://twitter.com/dougboneparth/status/1268960138385412098

Further down the comment thread:

Screen Shot 2020-06-05 at 1.15.40 PM.png
 
Monday will spike, this is the case 95% of the time. Of course *this* Monday might be one of the 5%

I can't predict the rest of the year, but on Tuesday I'll bet my left nut on Friday's close... Can already say it will be below $900, but need the options to re-jig Monday/Tuesday.

Don't get me wrong, HODL is a fabulous strategy, but if you're buying calls, FFS be aware that you're playing the house, and it isn't in your favour.

True, and let me add that it's not an honest casino.
 
Just a word of caution regarding Monday expectations. Today the markets had a massive rally fueled by a shockingly good jobs number.

However, not all is as it appears with the jobs number (4.7 million people not working and not getting paid were classified as “employed“), so expect the media to have turned the narrative on the jobs number before markets open on Monday. (It should be noted even when taking the classification peculiarity into account the jobs number was still better than expected).

E04B8DB6-E320-43D8-A7B1-1011FB9C8891.jpeg
 
Just a word of caution regarding Monday expectations. Today the markets had a massive rally fueled by a shockingly good jobs number.

However, not all is as it appears with the jobs number (4.7 million people not working and not getting paid were classified as “employed“), so expect the media to have turned the narrative on the jobs number before markets open on Monday. (It should be noted even when taking the classification peculiarity into account the jobs number was still better than expected).

View attachment 548327

Based on recent history I don't even know if the market cares. The massive rally will continue as long we have Covid19 cases and deaths under control. I can see the money moving to beaten down sectors, seems like the hedge funds are done with the tech stocks. It's now time to pump the airlines stocks, oh wait they already did lol.
 
Another nice gigaberljn video;
What an inefficient way to move the rock out of the trains.
$885 I think for the close tomorrow. My theory is that they don't want a repeat of last week where the SP escaped from them on Friday, so beat it down now with the macros - easier to push it up if needed tomorrow.
Well... you hit that right on the money. but... no no no. The market is not manipulated at all. Great call.

I made really good money this week. Could have done better since my bid was based on 880... still really happy.
 
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Based on recent history I don't even know if the market cares. The massive rally will continue as long we have Covid19 cases and deaths under control. I can see the money moving to beaten down sectors, seems like the hedge funds are done with the tech stocks. It's now time to pump the airlines stocks, oh wait they already did lol.

Oil stock is probably next. Some of mine went up 10% today when their dividend are yielding 10~15%. It was delicious.
 
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Based on recent history I don't even know if the market cares. The massive rally will continue as long we have Covid19 cases and deaths under control. I can see the money moving to beaten down sectors, seems like the hedge funds are done with the tech stocks. It's now time to pump the airlines stocks, oh wait they already did lol.

Definitely, the markets will not care. The markets did not care that unemployment was at record numbers previously, and so no reason for it to care about a few % difference. The markets have like a +/-20% deviation factored into being acceptable.
 
Just a word of caution regarding Monday expectations. Today the markets had a massive rally fueled by a shockingly good jobs number.

However, not all is as it appears with the jobs number (4.7 million people not working and not getting paid were classified as “employed“), so expect the media to have turned the narrative on the jobs number before markets open on Monday. (It should be noted even when taking the classification peculiarity into account the jobs number was still better than expected).

View attachment 548327
My guess is that good jobs number is a result of a ppp program which is all about "paying people for not working". All those covid developments will show funny and unusual effects on employment. As an example - we are currently struggling to rehire people - the incentive to work is too little compared to unemployment benefits.
 
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WSJ - hour ago: Covid-19 Skepticism Puts Author Alex Berenson at Center of Amazon Controversy

Excerpt:

Mr. Berenson said Thursday on Twitter that a booklet he wrote about the pandemic was rejected by Kindle Direct Publishing, Amazon's self-publishing arm. Titled "Unreported Truths About Covid-19 and Lockdowns," it argues that estimates about the deadliness of the disease have been overstated and that lockdowns have been counterproductive.

Tesla Inc. Chief Executive Elon Musk criticized Amazon's decision in a tweet that said, "This is insane@JeffBezos."

Amazon later said in a statement that "the book was removed in error."
 
Here's a fun weekend exercise for you all in providing evidence for some form of manipulation. I work with survey data in my day job, and we have a tool to measure the likelihood that people are lying about their ages called the Wipple Index. It has a specific formula when applied to age, but the general principle is the ratio of 0s and 5s in the data relative to other digits. So I took historical TSLA daily closes since January 2016, and counted how many times each day's rounded close ended with the ones digit on a 0 or a 5. Here are the results:

wipple.png


The odds of a Friday closing at a round 0 doesn't seem any more likely than any other day of the week, but the odds of a Friday closing at a round 5 is significantly higher. In a perfect distribution of data, we would expect to see a close ending in a five 10% of the time. In the data on Monday-Thursday the odds of the SP closing at a five is 12.7%, and on Friday it's 16.4%.

Statistically speaking, this relationship has a p-value of 0.177, meaning there is an 18% chance that this could be a coincidence. Not good enough for hard science, but good enough for the social sciences :D
 
Here's a fun weekend exercise for you all in providing evidence for some form of manipulation. I work with survey data in my day job, and we have a tool to measure the likelihood that people are lying about their ages called the Wipple Index. It has a specific formula when applied to age, but the general principle is the ratio of 0s and 5s in the data relative to other digits. So I took historical TSLA daily closes since January 2016, and counted how many times each day's rounded close ended with the ones digit on a 0 or a 5. Here are the results:

View attachment 548364

The odds of a Friday closing at a round 0 doesn't seem any more likely than any other day of the week, but the odds of a Friday closing at a round 5 is significantly higher. In a perfect distribution of data, we would expect to see a close ending in a five 10% of the time. In the data on Monday-Thursday the odds of the SP closing at a five is 12.7%, and on Friday it's 16.4%.

Statistically speaking, this relationship has a p-value of 0.177, meaning there is an 18% chance that this could be a coincidence. Not good enough for hard science, but good enough for the social sciences :D

The mechanics of option positions closing on a Friday, and the unwinding of hedging positions by market makers when those positions are closed leading to common Stock being bought or sold, actually naturally moves the stock price close to a round number where strike places are. It happens with every stock with large option trading activity, and the effect is amplified on Fridays with large amounts of option positions expiring. If you run the same analysis on other stocks with high levels of Options trading you will find the same pattern, it isn’t unique to Tesla. That doesn’t mean there aren’t attempts at manipulation of course, but the underlying trend for the stock to end a Friday close to a strike price is an underlying quirk of the system, not necessarily manipulation.