tangman

[Short] Possible TSLA H&S short

Short
tangman Updated   
NASDAQ:TSLA   Tesla
You'd think after a 50% rally in just under 2 months, even a sound profitable company would take a breather.

On the hourly, I see it forming a H&S resistance around 258.30

Earnings tomorrow is a possible catalyst to determine a direction. I think it's mildly possible they beat their expectations (less negative earnings) based on number fudging and/or outright fraud. No, they won't get punished for it as markets are currently lawless and irrational (Hello BYND $200). But again, after a 50% rally in such a short time, I believe any upside is limited. Best case scenario would be an upside burst that allows a cheaper entry into some 2020 puts. Failing resistance at 258.30 and losing the neckline at 254 would complete the H&S pattern and make attractive a tactical shorter term entry.
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Well, earnings went as well as I expected.

Net loss $408M, on record deliveries. They will never make money.


After seeing the strong run into the close, I bought a slug of 10 September puts near $265. Obviously with hindsight I wish I bought more, but the capital would then be more than I'd like to risk.

We should have interesting days ahead.
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