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August 3, 2018 | Will TSLA Lead Stocks Over a Cliff?

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

TSLA’s rally is so frothing-at-the-mouth stupid-scary that it’s tempting to think the stock is about to lead the high-fliers over a cliff. The automaker’s shares took a rabid leap Thursday, driven by the epiphany that the company isn’t burning cash quite as quickly as Wall Street’s best and brightest had estimated.  What really juiced the stock was a solemn promise from founder Elon Musk that, from this point forward, Tesla is going to be profitable. Moreover, he promised he wouldn’t go any deeper into hock to keep production lines running at full tilt. Say one thing for the guy, he’s got brass balls, considering that even a selloff in the stock market in he months ahead could turn his rosy forecast to suet. Regardless, traders bought the ‘new’ Tesla with reckless abandon Thursday, particularly bears who had bet the ‘Don’t Pass’ line aggressively.  Turns out there are no more shares for shorts to borrow, a situation that could propel TSLA even high as the week ends. We shouldn’t be too eager to get in its way, but that doesn’t mean we can’t enjoy the show.

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August 3rd, 2018

Posted In: Rick's Picks

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