We Don’t Believe in Space Cowboys (TSLA)

It’s been a few weeks since we at A Jew and His Gold offered y’all a straight commodities trade, and that’s simply because the equity alternatives were always superior!

We trust you’ll bear with us as the commodities work through their current funk and begin trending clearly in one direction or another.

And it could be soon, but in the meantime, we’re also reckoning you won’t mind looking at another blow-off-the-boots-trade – this time, using the shares of space-boy wannabe and first degree solipsistic arse, Mr. Money Lust, er… Elon Musk.

It’s Tesla, Georgie (NASDAQ:TSLA), and we’re firmly in the camp of those who believe she’s reached the top of her trading range.

But before we get to the set-up, we feel it’s important to mention that this cannon has always been a loose one, so we’re warning you to heed all the ensuing precautions if you choose to go with the trade.

And we start with this –

To begin, the broad market appears to be turning over.  The FAANG + M grouping just yesterday pulled bearish engulfing patterns all of them, and because the rise in the S&P 500 over the last 60 days has largely been attributable to this six-pack, we’re betting that the current spike may have run its course.

As for Tesla itself, we never liked the company except as an object for trade.

WHAT!?

That’s right, we objectified the company in order to satisfy our hunger for immediate, this worldly gratification.

That being said, the CEO is a competent promoter (and little more), the company’s valuation is unearned, and the stock price fluctuates wildly according to the varied ascendancy of its rabid fan base and a hearty cohort of short sellers.

Many happy returns,

Matt Mcabby

Follow @HughLOHaynew