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Trading bug?

Discussion in 'TSLA Investor Discussions' started by haid, May 29, 2013.

  1. haid

    haid Member

    Joined:
    Feb 14, 2013
    Messages:
    71
    Location:
    Reston, VA
    What if the shorting activity is somewhat based on a bug in the trading analysis engines out there. Think about it, an algorithm is only as good as the model it is based on.

    Tesla is an anomaly. The level of short interest. An upstart in a mature heavily understood market. As a result algorithms indicate opportunities to make a killing after a run up. Remember 30s? 50s pull back? 80s/90s? And maybe now.

    Clearly a new equilibrium must be found, but I wonder if il-fitting predictive models have played a role...
     
  2. mitch672

    mitch672 Active Member

    Joined:
    Jul 1, 2012
    Messages:
    1,868
    Location:
    Stoughton, MA
    It's clearly trading on something other than fundamentals at this point, so it's very hard to place a real value on it, it's worth what people will pay for it. The issue is, stocks can and are frequently manipulated, and TSLA is no exception. With the recent run up, it doesn't take much to spook these recent new shareholders, who get spooked which then leads to further panic selling. I'm afraid well be seeing a lot of this coming up. It doesn't help that "helpful" authors (with no positions mind you), are writing 2-3 articles / day on "Seeking Alpha" advising longs to "take profits before the jig is up". Sounds more to me like shills or shorts trying to free up some shares/cause panic and get the price lowered. Welcome to the new market manipulators, desperate people taking desperate, sad actions.
     

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