NIO - Looks short to me

NIO is probably a good buy, long term.

But short term, I'm seeing nice profit off my NIO short term puts. NIO could turn out to be the buy of the century... at $2.80 :)


We can see here, NIO is coming to the end of the wedge it began forming on April 1.

The price (and market in general) was pumped up in the last 10 minutes of trading today by algo panic buying, so I'm going to largely discount that.


Since breaking down from the top of the wedge, the price has shown an affinity for the lower end of the wedge.

Now that we have Chinese tariffs increasing from 10% to 25% at the EOD on Friday, chances look very good for a drop, before 5/10.

Probably 5/8 at this pace though!

Then there's also the current GLUT of Chinese EV companies. 90% of them will be gone in 12 months.

Oh, remember China also cut it's subsidies? Oh, and China is already in or very quickly approaching recession...

Need I list more reasons to short this? :)

Comment:

Still looks bearish. Keep an eye out for potential reversal around the $4.40ish but with NIO facing so many technical headwinds, I see a much higher chance the price breaks lows and sets new all time lows.

Shorts away!

Comment:

Tomorrow, for bears, there will be dancing in the streets. It may be dancing in the blood of the bulls, but it's still dancing none the less.

Congratulations, you pessimistic fucks! :)

Thanks to Martin Trend, I picked up 30 $5 5/17 puts on the cheap. Already in a nice profit. Tomorrow could be quite more.