Tesla: Buy The Rumor, Sell The News
Tim Knight | Mar 28, 2022 04:04PM ET
If you ask most people about the sell-off earlier this year, they will blame the Ukraine invasion. The funny thing is that the invasion marked the BOTTOM, almost to the millisecond. Feb. 24!
Take Tesla (NASDAQ:TSLA) (please!) Since Feb. 24, it has climbed 57%. Fifty. Seven. Percent. That’s the kind of return one would hope for over a five-year time span, not five weeks. But there we have it.
All this was based, of course, on the meaningless news about a stock split. But people gobble that kind of thing up, so they piled right in. Please take note of the slow-moving Bollinger Bands and where the present price is (I would also ask you to note that these same BBs nailed the bottom precisely). I don’t think there’s much left to this rally.
Even more straightforward is the broken trendline. Today’s $80 price ascension has crammed the price bar against its broken trendline. That, to me, is compelling evidence of imminent exhaustion.
Get The News You Want
Finally, if I may say so, here is a chart of the stock split last time. Please note the small letter “S” on the left side of the chart. That marks the day of the split. Now, I recognize there is a difference between a split day and an announcement that they are considering a stock split. But I simply offer the chart below to clarify that just because stock splits doesn’t mean it instantly flies higher. The last time, this was a nearly perfect “buy the rumor, sell the news” kind of event.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.