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Will This Be the Mother of All Island Reversals

This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

I genuinely hope some of my subscribers are benefiting from my short picks. In spite of this laughably fraudulent market (lifetime high on the NASDAQ today, thanks to literally 600 billion in Yuan thrown by the Chinese to support equities in the past 24 hours), some of my lovingly-chosen picks are getting blown to pieces. The latest, taking place right now, is Ford.

The delicious after-hours action isn’t reflected here, but Ford already broke its long-term trendline. I’m hanging on to this one.

Of course, everyone and his dog are trading TSLA these days. I’ve got a few words about this latest mania.

I have said repeatedly how I consider Tesla to be like Kryptonite for bears. In spite of my oft-repeated declaration, I couldn’t help myself yesterday, and I shorted 10 shares. In short order, two things happened:

  1. I had a couple hundred bucks in profit;
  2. I was getting roundly chastised on Twitter for shorting any Tesla.

I shorted another 10 shares, but when my profit flipped to a loss, I decided, screw it, this is silly, and I covered for a $60 loss. Had I just held fast, I would have been looking at about a $3,500 loss at one point today. So I was relieved not to be near any of that stuff.

So, having the crap scared out of me, I knew I wouldn’t be monkeying around with it anymore, even though we ALL know (well, most of us, anyway) that this is absolute insanity, and it’ll come crashing down at some point. In fact, those of you who watch me on tastytrade heard me say that “…when this starts to sell off, it will cut through prices like a red-hot knife through butter.:” About 10 seconds after I said those words, this happened:

How delighted I would have been to have shorted this piece of crap at $968, but I’m simply bold, not insane. Anyway, to come to the point: if tomorrow we open below today’s low, and we stay below it, this is going to be The Mother Of All Island Reversal Patterns.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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