Look At This Stock That I Am Betting Against Now – Mike Swanson (03/20/2018)

When the stock market drops stocks drop, but there are stocks that can fall no matter what the market does over the course of a year. I am now betting against this fad wonder stock that I think is going to collapse and in time even go bankrupt.

I’m talking about TSLA.  Yes I’m short TSLA shares and my private group of Power Investors know that I have been short now for a few weeks in this stock and twenty more.

Take a look at this technical analysis chart of it.

TSLA has actually been a tech stock laggard all year and as you can see has been forming a classic stage three top for almost a year now with support at the $300 level.

If it breaks $300 in the coming weeks or months then it will go into a bear trend, which I believe will ultimately take it down to near zero and off the stock market with DELISTMENT.

It’s fun to short stocks in junk companies that you don’t own and just sell them.

When it comes to TSLA why not?  As the insiders are accelerating their own selling as you can see here.  I know Musk hypes, but if you look you’ll see a Musk dump.

But the real reason I am now betting against TSLA in defiance of CNBC pumpers like pony tail guy is that it is a junk bond debt machine that grows debts faster than income.

I talked about this (and the situation in Facebook now) with David Skarica in a video session we did after the close.

In the video above I go over the fundemental reasons why TSLA is a POS stock.

Now I do think we are in a bit of a stock market pullback situation as I posted last week that the stock market momentum rally had stalled out.

That makes it tough to make money just playing the averages or buying and holding any stock thinking it will go up from here without ever pulling back again.

That means that shorter term trades make more sense than buying and holding.

My bet against TSLA is a positional bet.

For a short-term trade I think the best situation is going to involve tomorrow’s Fed meeting and how gold reacts to the FOMC decision as the volatility bands on in it have squeezed.

My buddy Matt Morris is targeting this trade. To learn about how he plays volatility spikes (and has done so successfully around Fed days) click here.

Grab Matt’s game plan for the FOMC meeting by going here.

 



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