Shares of TSLA fell again yesterday for an ugly 6% drop. This is following the 7% dump just the other day. And if you can recall last week I did a video showing how you could bet against this junk TSLA stock.
Despite the drop, TSLA is actually still one of the most popular stocks to own among the masses. Robinhood lists the top 100 most popular stocks to own by the most number of people and it is ranked number 10 on the list.
So there are a lot of Musk fanboys out there still holding on in hope.
BTW if you open up a Robinhood trading account you get free commissions no number the size of your account and get a free share of stock if you use this link here.
One of the reasons though that so many people own TSLA is because it was one of the most hyped up stocks on CNBC in years past.
Here is an image from CNBC with a Fast Money trader telling people to gamble with calls on the stock a few years ago.
So yesterday after 5:00 PM I turned on the TV for a few minutes and was surprised to see that the CNBC Fast Money show has now turned against Musk and Tesla with a lady on there even saying that the bond market is warning that the company is going to run into big trouble.
She is right and you can watch this segment here.
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The thing is Tesla would not even exist if it weren’t for the Federal Reserve’s near zero interest rate policies of this decade and it isn’t the only stock that we can say that about either!
What is different now is that the chart has now totally broken down on the technical analysis chart as TSLA closed below $200.0 yesterday so anyone with any sense in the market knows it’s now on the highway to hell.
In the end when it comes to stocks most people’s opinions become dictated not my fundamentals, valuations, or balance sheet studies, but on pure price action.
As long as something goes up the masses will buy and believe no matter what the thing is, but once something goes down long enough they sell in despair.
Bitcoin taught us that!
Now since the people on CNBC are studying the market every day and are professionals they are quicker to adjust to the trend changes than the masses are – and that’s why CNBC has turned against Tesla while the Robinhood traders have not.
The existence of such pools of dumb dead money in the market though provides you with the opportunity to profit.
My book Strategic Stock Trading can help you do this. This book lays out the simple methods and key indicators I continue to use to keep on top of the trends of the market and to identify the best stocks to buy.
If you take advantage of my special book giveaway offer you’ll also get into my private trading group and receive tomorrow’s video update my coming trade alerts to take advantage of it.
To grab it go here:
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-Mike
