After persistent rejections at the 21 day EMA, Tesla (TSLA) is back at the 100 day MA support around 657.31. Even if TSLA saw incredible flows, their cash burn on the aggressive (global) expansion is going to be hindered by tighter monetary conditions going forward. TSLA's bonds are incredibly important to it's viability/growth strategy, so we need to see a massive win for TSLA in the near future in terms of actual revenues/flows, or we could be heading back to the 500 level very soon...
@Bullishcharts completely agree! The rejection at the 21EMA yet again said it all. We could be at the 200MA very soon.
Yuriy_Bishko
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buy the dip
Hedge_Of_The_World
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@Yuriy_Bishko Lol. Hey buddy! That’s certainly been the best strategy over the past 12 months, for sure. But, let’s see how the bond market reacts to a 1.75% 10Y Treasury yield, with a 200DMA just under 2%, which we’re certain to hit in the immediate term. Tesla would puke to $500 easily. Dip buyers will learn a valuable lesson very soon.
@maxiguillermo potentially, but the Fed news was maybe a bit of a misunderstanding. The long end of the curve is being overwhelmed with supply, and it’s only going to get worse. Investors are selling Treasuries ahead of what could be a straight up bond market crash, causing the cost of servicing variable debt to skyrocket, hindering growth companies like Tesla. We’ll have to see how the market reacts to the long end, and how the slow motion crash develops. But, one thing is for certain, if Tesla really pukes, I’m a buyer at the right price.
dmjs12
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closed above it?
Hedge_Of_The_World
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@dmjs12 Ya buddy, very bullish. The 21 day was captured on DJ Powell’s dovish remarks. You know the game. Jobless claims tomorrow, and we need to see how yields behave overnight after bond markets were literally assured of ongoing demand by the Fed.