Yes, my thoughts exactly. And now is the best time for MMs to keep the SP bleeding for a few more months as we’ve been trading sideways for about 3 months already. With the huge Q4P&D beat, many expect TSLA to rise, so many investors/traders might start leveraging up now. And it’s not just short-term fleecing of retail, but long term as well because margin has interest costs—why not keep the SP depressed while gamblers tell themselves, “This MUST be the bottom, we’re sure to rise soon,” so they keep adding margin, the SP tickles $1100+ convincing us a break out is imminent, and then one (real or imagined) disaster after another comes across the news wire, offering convenient excuses to keep depressing the SP. And during these prolonged intervals of depressed SP some gamblers begin to get too underwater and get margin called, or they lose a job, or a family members dies, or any number of life events can befall one to cause him/her to sell at a loss, all while MMs collect margin interest. MMs have all the power, money, inside information and time to ride this out—most gamblers don’t. So yeah, reverse Robinhood, you got to love it.
Every few years we see these huge transfers of wealth from taxpayers to corporations: 9/11 (taxpayer-funded war on terror), 2008 housing crash (taxpayer-funded bailout of too-big-to-fail-overleveraged Wall Street), and now covid (taxpayer-funded war on a germ): take from the poor, frightened, gullible taxpayer in an “emergency,” and give it to the wealthy and powerful governments/corporations so their “experts” can keep us safe and secure; socialize the debt, privatize the profit, rinse and repeat. Disaster Capitalism at its best. If you stayed invested during covid crash you got rich just like Wall Street and all the other powerful, connected globalists. Congratulations.
Wouldn’t surprise me in the least to see TSLA stuck trading in a deep rut for a few months and then suddenly, in the span of a few weeks, the SP shoots from $800 to $1600 or something ridiculous. We’ve seen it before. We’re probably seeing it again. I’ve learned the hard way not to margin trade because we’ve seen time and time again TSLA ride the lower BB down for a while, stay down, and then rocket back up. The most recent is this last summer when I was working; I slowly accumulated all summer while TSLA traded low—one of my last buys was at $644, then suddenly in the fall, we went from 600s to 1200 in short order.
I just buy and hold now because I’m too stupid greedy to even swing trade.
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