Friday and Monday have been unusual trading days for the stock because of the rule installed restricting shorts to manipulate too heavily after the 10% drop last Friday. That rule has been valid Friday after the drop and Monday.
It was like an experiment helping us all to understand to what extend the artificial selling shorts do, to motivate weak longs to sell as well, has a real effect.
Lets disregard if the media have had an effect for the moment. Its another influential factor for sure and as the latest report from Zach at CleanTechnica has shown the overwhelming negative reporting of course does have influence (208 Tesla Headlines, 155 Negative & 26 Positive — #Pravduh About #Tesla | CleanTechnica) . That influence remains the same over time though and we can therefore eliminate that factor in the assessment as its statistically not relevant.
Don't get this wrong as its of course a negative factor for the sentiment and SP but not if you compare a "before and after".
Its worth to mention that 60% trading from shorts is very high. IOW we seen the shorts limited in their ability to manipulate that much but still a very high rate of involvement.
After adding Friday (I like the flavor of panic in the air) I made Monday morning European time the decision that the short term risk is at about 10% but the upside opportunity around 90% . Usually I do not buy in Frankfurt as the volume is too low and the price determination only a shadow of Nasdaq. Monday that fact turned to my favor and I bought in many hours before Wall Street opened at $270 and $272.
Now we all watched the chard yesterday and it looks impressive to me given the circumstances e.g. news, sentiment, production numbers. A constant up move slow and steady with resistance levels you could point at and a rally once overthrown. No whack the mole and other strange movements not related to news or fundamentals.
Its a testimony of how strong the bulls indeed are. Its often overlooked that the shorts can only win if they manage to create the impression within the bulls that they need to sell. They are powerless if the market decides that Tesla at this prices is a good deal.
To summarize, we do know now for a fact that the instruments Wall Street has given shorts to influence the stocks price has an undeniable artificial negative effect. For me it should be eliminated as it does not help to determine the true value the market considers a company has at all but creates an artificial wrong impression that is misleading.
If the SEC ever wanted to protect often not very well informed small Retail investors they should make sure they take that tool out of the hands of shorts forever.
It was like an experiment helping us all to understand to what extend the artificial selling shorts do, to motivate weak longs to sell as well, has a real effect.
Lets disregard if the media have had an effect for the moment. Its another influential factor for sure and as the latest report from Zach at CleanTechnica has shown the overwhelming negative reporting of course does have influence (208 Tesla Headlines, 155 Negative & 26 Positive — #Pravduh About #Tesla | CleanTechnica) . That influence remains the same over time though and we can therefore eliminate that factor in the assessment as its statistically not relevant.
Don't get this wrong as its of course a negative factor for the sentiment and SP but not if you compare a "before and after".
Its worth to mention that 60% trading from shorts is very high. IOW we seen the shorts limited in their ability to manipulate that much but still a very high rate of involvement.
After adding Friday (I like the flavor of panic in the air) I made Monday morning European time the decision that the short term risk is at about 10% but the upside opportunity around 90% . Usually I do not buy in Frankfurt as the volume is too low and the price determination only a shadow of Nasdaq. Monday that fact turned to my favor and I bought in many hours before Wall Street opened at $270 and $272.
Now we all watched the chard yesterday and it looks impressive to me given the circumstances e.g. news, sentiment, production numbers. A constant up move slow and steady with resistance levels you could point at and a rally once overthrown. No whack the mole and other strange movements not related to news or fundamentals.
Its a testimony of how strong the bulls indeed are. Its often overlooked that the shorts can only win if they manage to create the impression within the bulls that they need to sell. They are powerless if the market decides that Tesla at this prices is a good deal.
To summarize, we do know now for a fact that the instruments Wall Street has given shorts to influence the stocks price has an undeniable artificial negative effect. For me it should be eliminated as it does not help to determine the true value the market considers a company has at all but creates an artificial wrong impression that is misleading.
If the SEC ever wanted to protect often not very well informed small Retail investors they should make sure they take that tool out of the hands of shorts forever.
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