Tesla!

That 880

Thought about penning a note for TSLA which reports earnings at 430 PM Central this afternoon. I have been quite bullish on this stock all the way down from 600 handles.

The stock has been flirting with 900 dollars All Time Highs all thru this week. The stock has also single-handedly kept a lid on S&P500 which has been raring to go at 4535 and beyond.

There are massive expectations from this company and rightfully so! A firm consensus within the market participants seems to have formed that TSLA earnings will be super-duper spectacular ⭐️ ⭐️ ⭐️ ! Subtle clues hidden 🕵️‍♀️ in product pricing and near 0 inventory certainly seems to indicate so and demonstrate a company that is confident of its prospects 👍

However, markets often work in funny ways when such consensuses do form. Markets are also atleast 3-6 months forward looking. What’s worked in past may stop working, what’s not working may start working again.

As for me, I will be dialing in the earnings conference and listening for what they say about supply chain side issues which are plaguing almost every single one of S&P500 components. Even Procter and Gamble hasn’t been immune.

There is also a specter hanging from Chinese crackdown on tech whether local or domestic. Chinese customer is underwater with 17,000 USD debt per capita. All these factors while trivial now, may not be ignored for long.

So, to summarize in technical terms, 880 has been an Achilles’ heel for TSLA bulls this year. Any new buying for me here will have to be on an inter-day close above 880, not below it.

I do think if earnings slip, 780-803 zone is a pretty decent area for me to reload.

Stock just bid $867 as I signed off.

~ Tic Toc 🍀