[quote=svelte]Holy freakin christ I hope nobody on here actually shorted Tesla…they were up to $961/share at 3:30 today!
From a low of $178/share on June 3, 2019!
What rational reason can there be for that?
Sure they showed a profit and it looks like the tide may be turning for them, but let’s get real here!
I think the most logical explanation is that the short sellers were forced into a “short squeeze” corner where they all had to buy stocks at the same time to cover the shares they borrowed last summer…and that is causing the price to jump.
Bet it comes down over the next few weeks.
Man some folks got burned very very badly on this.
If only I’d been brave enough to put all my cash in buying stock at $178. But you know what? I would have sold way before now anyway. Mind games![/quote]
If they did, they won’t admit it. The folks that shorted AMD when it was single digits got burned even worse.
It’s my opinion that the people predicting a stock market crash because we are close to the end of a bubble …. are dead wrong. I think we are just at the 2nd inning of a bubble-licious rally. That coronavirus did a pretty good job to wack 600+pt+ off the dow, but that seems to have been a panic selloff. And looking over the period of MERS and SARS, the US markets didn’t tank during those periods of time, and SARS was arguably as detrimental to China . It just doesn’t feel right. People are hyped up about Tesla, and Apple, and AI, and people have bought into the recovery story of now more value-ish plays like GE and Boeing . I wouldn’t be surprised for most of this coronavirus influenced mini correction to be made back over the next few days provided that the coronavirus turns out to be what people think it is: mainly a problem for China…..And from an international trade perspective, this might actually be good. China is basically dropping tariffs on anti-virus drugs because they need all the help they can get, so it seems logical that pharma and biotech might actually rally at this point. Meanwhile, there was a lot of capital flight from the Chinese markets over the past few days. I seriously doubt all that capital is going to be camping out in gold and bonds and bitcoin. Gold, for example, didn’t rally to the extent that people in the D&G (doom and gloom) category thought it would. It didn’t even touch $1600/ounce when the virus panic started and now, were back down to $1560/ounce, despite Chinese inherently loving gold. So where did all that money go??? I suspect to the US equity markets. I wouldn’t be surprised if we rally back. Yes, there will be a few companies that will say their business is impacted by a new economic weakness in China from the virus (a convenient excuse), but it won’t be a problem across all companies. If we have a virus outbreak here in the US, then that could be a problem. But imho, even if we do, I don’t think it would be worse than the influenza. Just my opinion, it’s the wrong time to short. Not yet. For me, with that 600 pt drop, I moved a small previously cash position back into the markets. I think we’ll see this rally back in the short term. The dow was back up 400+ yesterday. I’m just drawing on my prior experience from the dot.com days…if one thinks it’s similar, it feels like things are just getting started. That tesla doubling in price is a prime example. The unicorns (which tesla is one) usually starts moving in doubling tripling in price…And then those main unicorns get exhausted in price movement, the lesser more questionable unicorns start to rally massively too for no reason…Also we haven’t seen a flood of IPOs from less than stellar unicorn companies from the Bay Area. My litmus test is when companies like Chewy starts to rally the way WebVan and pets.com or etoys did. We simply aren’t there…yet…
