Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
The latest out from ZeroHedge, says that Michael Burry (a.k.a., The Big Short), while claiming Tesla is overvalued (current P/E, 271), does not have a short position.
Adding to the ‘overvaluation’ theme, is deterioration in sales that’s now entering its second year; here and here. Yet, TSLA just made all-time highs this past December 22nd.
In a nutshell, this is the problem with ‘fundamentals’.
Meaning, as far as assessing price action probability, they’re not useful and never have been (not advice, not a recommendation).
A good example of that premise is CrowdStrike (CRWD); with its current P/E, at minus 428. That’s a negative.
When their P/E, is positive, which is not often, we get numbers like 786; yet, the closing price (yesterday) for CRWD was 468.76, with a market cap of 119.4 billion.
How does that even work?
Possibly more entertaining from the ZeroHedge link, are the comments. All kinds of reasons not to short Tesla.
Tesla TSA, Daily
What do you see?
TSLA printed an all-time high on an attempted breakout that has so far, fallen below resistance.
On the sell side, is of course, to short TSLA directly.
Not wanting to be completely exposed to any untoward action, one can short Consumer Discretionary XLY, and effectively short AMZN as well (not advice, not a recommendation).
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Today’s action continued the upside test, but the momentum has slowed (not advice, not a recommendation).
The next earnings release is scheduled for early March, link here.
While (nearly) all eyes are focused on the A.I., and precious metals blow-out, elsewhere in the market, sectors appear to be stagnant or breaking lower.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Similar to yesterday’s update, showing a wedge pattern for CRWD, we have another (long term) wedge pattern in Agnico Eagle Mines (AEM).
Focusing on ‘strategy’, when market patterns show up, especially in the longer timeframes, we’ll take notice.
Before getting to the chart, here’s a compilation of Richie Naso quotes and insights that have been reviewed over the past week. It’s always good to hear thoughts from a renowned trader.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
The insert at left, shows CrowdStrike (CRWD), on a monthly scale.
The month of June posted a ‘throw-over’ out of the terminating wedge pattern.
The month of July (so far) has posted a return back into that pattern.
The coming week may see an attempt to rally. If so and depending on price action, the risk on a short position may be reduced (not advice, not a recommendation).
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Part of the wedge ‘Throw-Over’ as we’ll see in the chart, may have been in response to this, link here.
With the ‘all clear’ going out to millions of ‘investors’, what could go wrong?
Looking at it from a strictly Wyckoff, and chart pattern perspective (a la Richie Nasso), probabilities favor a reversal (not advice, not a recommendation).
CrowdStrike CRWD, Daily Close
Price action has entered back into the pattern.
Positioning
No active positions in CRWD … yet.
After yesterday’s trend-break (into the pattern), there’s a possibility for a rally to test.
Other Markets
SOXX short, was re-opened as SOXX-25-04, with stop at yesterday’s high (not advice, not a recommendation).
Wal-Mart short, WMT-25-04, remains active, with stop being moved down to (near) the last session high of 96.91 (not advice, not a recommendation).
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
The Danger Point® 