5 minsA $74 Billion Investment Plan for the UK’s Energy System
2 hoursU.S. Aims to Restock Strategic Oil Reserves by Year-End
3 hoursBill Gates-Backed Firm to Start Building First U.S. Advanced Nuclear Reactor
4 hoursExxon CEO Insists on IRA Subsidies for Hydrogen Project
5 hoursUkraine Drone Attacks Knock Out 600,000 Bpd of Russian Refining Capacity
6 hoursArgentina’s Economic Shock Therapy Leads Enel to Delay Sale of Power Distributor
19 hoursEurope Gas Prices To Fall Throughout 2024 Amid High Storage Levels
21 hoursU.S. Gasoline Prices Rise for Third Consecutive Week
22 hoursCNOOC Makes Another Major Oil Discovery Offshore China
23 hoursNations Divided Over Fees on Shipping Industry Emissions
1 dayChina Poised to Import Record-High Crude Oil Volumes From Russia
1 dayGermany Signs LNG Supply Deal With ADNOC
1 dayVenture Global Buys Nine Vessels to Transport LNG
1 dayChina Launches $4 Billion Power Transmission and Storage Project
1 dayOil Prices Continue to Advance as Bullish Sentiment Takes Hold
1 dayIran Signs $13 Billion Worth of New Oil Contracts
1 dayPutin Claims Election Victory as Ukraine Pounds Refineries
4 daysBloomberg Survey: Brent To Exceed $80 By Year's End
4 daysPoland to Sink $16 Billion In Energy Grid to Handle Renewables
4 daysUkrainian Drone Attacks Knock Down 370,500 Bpd of Russia’s Refining Capacity
4 daysCourt Halts New Mining Permits in Argentina’s Key Lithium Region
4 daysUkrainian Drones Attack Another Russian Refinery
4 daysEU Warns of Heightened Somali Piracy Threat to Shipping
4 daysU.S. to Back Nevada Lithium Project With $2.26 Billion Loan
4 daysJapan Looks to Restart the World’s Largest Nuclear Power Plant
4 daysBahrain Oil Projects Gets U.S. Funding Despite Climate Agenda
4 daysBP Partners With Venezuela on Trinidad Gas Field
4 daysOil Prices Set for a Strong Weekly Gain on Demand Revisions
5 daysBrent Soars Past $85 As IEA Recalculates Supply, Demand
5 daysFourth Russian Lukoil Exec Found Dead by Apparent Suicide
5 daysAustralia’s Victoria State Fast-Tracks Renewable Energy Projects
5 daysBrazil Boosts Clean Energy Beyond Hydropower
5 daysVattenfall Ditches Project to Produce Hydrogen From Offshore Wind
5 daysU.S. Export Bank to Vote on Backing Bahrain Oil Project Despite Climate Pledge
5 daysIEA Sees OPEC+ Cuts Pushing Oil Markets Into a Supply Deficit
5 daysShell Eases 2030 Emissions Target
5 daysU.S. Wants Venture Global to Explain Confidentiality of Its LNG Project
5 daysEV Makers Worried About Europe’s Charging System
5 daysChina’s Construction Squeeze Prompts Refiners to Cut Production
5 daysMexican Oil Giant Pemex Eyes Net-Zero Status by 2050
3 minutese-car sales collapse
6 minutesAmerica Is Exceptional in Its Political Divide
11 minutesPerovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
5 hoursGREEN NEW DEAL = BLIZZARD OF LIES
3 hoursHow Far Have We Really Gotten With Alternative Energy
13 hoursIf hydrogen is the answer, you're asking the wrong question
4 daysOil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
6 daysThe European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
1 dayBiden's $2 trillion Plan for Insfrastructure and Jobs
5 days"What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
For me, shorting Tesla (TSLA) is like crack or heroin for some people…I know it is dangerous and I really shouldn’t do it, but at times the urge overtakes me and I lose all power of resistance. I rationalize it by telling myself that this will be the last time, and that it won’t be for long. This is one of those times.
(Click to enlarge)
Firstly, just look at that chart! If that pattern of roaring up, dropping and then stalling when trying to resume the upward move doesn’t scream “sell me!” to you, then you aren’t listening. Appealing as that visual is though, it was just confirmation for me that now was a good time to indulge myself. The real reasons lie in something probably not all that familiar to addicts of other kinds, logic.
First and foremost, there is the belief that stocks in general look vulnerable. The good economic news and strong earnings season are now fully priced in, and what is left is a lot of fear about an unstable geopolitical situation and confusion about the possible political implications of a Republican President who now looks more at home with Democratic leaders than he ever has with those in his own party. I don’t have a crystal ball, so cannot accurately say what will cause a nervous drop, but from a fully valued position that looks more likely than another surge, especially to those who are following the drop in both Treasury yields and the dollar.
(Click to…
For me, shorting Tesla (TSLA) is like crack or heroin for some people…I know it is dangerous and I really shouldn’t do it, but at times the urge overtakes me and I lose all power of resistance. I rationalize it by telling myself that this will be the last time, and that it won’t be for long. This is one of those times.
(Click to enlarge)
Firstly, just look at that chart! If that pattern of roaring up, dropping and then stalling when trying to resume the upward move doesn’t scream “sell me!” to you, then you aren’t listening. Appealing as that visual is though, it was just confirmation for me that now was a good time to indulge myself. The real reasons lie in something probably not all that familiar to addicts of other kinds, logic.
First and foremost, there is the belief that stocks in general look vulnerable. The good economic news and strong earnings season are now fully priced in, and what is left is a lot of fear about an unstable geopolitical situation and confusion about the possible political implications of a Republican President who now looks more at home with Democratic leaders than he ever has with those in his own party. I don’t have a crystal ball, so cannot accurately say what will cause a nervous drop, but from a fully valued position that looks more likely than another surge, especially to those who are following the drop in both Treasury yields and the dollar.
(Click to enlarge)
In the past, that wouldn’t have mattered to Tesla followers, but that is no longer true. Combine the first chart with the one above for the S&P 500 and it is clear that TSLA, once a stock notorious for having absolutely no correlation to anything other than the words uttered by Elon Musk, has become an exaggerated follower of market trends. If the more pessimistic view evident in other markets takes hold in stocks, a short, sharp drop looks likely.
There are also some company specific factors that have some observers worried. I have said in the past that some of the things that would be a concern for most stocks are perceived as positives by TSLA buyers, but when they start to pile up they still can have an effect. Borrowing more money as Tesla recently did may be a better option for stockholders than raising capital by issuing more stock, but it does indicate that cash flow is still an issue, and that view is confirmed by another worrying trend.
As Bill Maurer at Seeking Alpha points out in this article, Tesla has seen a rapid rise in inventory over the last few months. There are several possible reasons for that laid out in the piece, but none of them are encouraging for the stock’s short- term prospects. Maurer’s conclusion that the surge in inventory looks like a major contributing factor to the large discounts on Teslas that he noticed will cause some concern. Margin squeezes are bad enough for traditional, high volume car manufacturers, but for a relatively low volume producer with cash flow issues they are an even bigger problem.
There are then some sound reasons for believing that TSLA is about to correct downwards. I cannot stress enough though that selling the stock short, either directly or through an options trade, is always a risky play given TSLA’s logic defying history and the undeniable long-term potential of the company. Still, knowing that something could be bad for you is not always a barrier when temptation rears its head, and right now looks like a good time for one more hit…
To access this exclusive content...
Select your membership level below
COMMUNITY MEMBERSHIP
(FREE)
Full access to the largest energy community on the web