{"id":38132,"date":"2017-02-16T23:27:40","date_gmt":"2017-02-17T07:27:40","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=38132"},"modified":"2017-02-16T23:27:40","modified_gmt":"2017-02-17T07:27:40","slug":"toppy-tesla","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/","title":{"rendered":"Toppy Tesla"},"content":{"rendered":"

In early January, Tesla Motors (TSLA) confirmed its breakout from resistance at its 200-day moving average (DMA). At that point, I got bullish on the stock from a swing trading perspective<\/a>. That bullishness came to a screeching halt today.<\/p>\n

On September 4, 2014, Tesla Motors (TSLA) reached an all-time closing high of $286.04\/share. The stock has travelled on a roller coaster ride since then on its way to this long overdue challenge of that all-time high.<\/p>\n


\n
\"Since<\/a>
Since 2016, two sharp and extremely bullish rallies have provided bookends for an extended period of lackluster performance.<\/figcaption><\/figure>
\n<\/center><\/p>\n

On February 14, 2017, TSLA stretched out its uptrend and rally well above its upper-Bollinger Band (BB) on its way to breaking through the all-time closing high. When buyers gave way to sellers, the fade created the potential for a bearish evening star pattern<\/a> characteristic of tops. In this case, buyers stretched TSLA as far as it could go before exhausting themselves. News of efforts by the United Auto Workers (UAW) to start a union at TSLA<\/a> provided the catalyst to embolden sellers enough to confirm the topping pattern. TSLA closed at its first lower low since the fade from the all-time high.<\/p>\n


\n
\"TSLA<\/a>
TSLA challenged its all-time closing high, but buyers were not able to sustain the pressure. Sellers faded TSLA and now a high-volume down day has confirmed a bearish topping pattern.<\/figcaption><\/figure>
\nSource for charts: FreeStockCharts.com<\/a><\/strong>
\n<\/center><\/p>\n

The toppiness as not quite driven an end to TSLA’s primary uptrend. TSLA closed right at the bottom of the upward trending channel formed by its upper-BBs. TSLA’s 20 and 50DMAs are barreling higher with strong uptrends. If sellers are able to continue the pressure from here, I fully expect those uptrend lines to provide tough resistance to further losses. Short interest provides an interesting backstory. Almost 40% of TSLA’s float is sold short<\/a>. Any downward momentum will surely get punctuated by sharp rallies as many (new) shorts scramble to cover to get out the way of the latest Elon Musk tweet<\/a> or other bullish news alert.<\/p>\n

Sagging sentiment supports the prospect of an extended pullback for TSLA. StockTwits traders are only 55% bullish on TSLA versus 71% bullish last week.<\/p>\n


\n
\"StockTwits<\/a>
StockTwits sentiment on TSLA is sagging and at its lowest point in at least 2 months.<\/figcaption><\/figure>
\nSource: StockTwits<\/a><\/strong>
\n<\/center><\/p>\n

I am playing this turn of events first as a hedged trade: a small short position covered by long call options. The stop for the short position is a closing all-time high. Otherwise, I will likely try to hold until at least a retest of 50DMA support. I will not renew the call option hedge after it expires in another day.<\/p>\n

(On a side note, it is interesting to note how TSLA printed its W-bottom right around the point that notorious short-seller Citron slapped a $100 price target of TSLA back in March, 2016<\/a>).<\/p>\n

Be careful out there!<\/p>\n

Full disclosure: short TSLA, long TSLA call options<\/p>\n","protected":false},"excerpt":{"rendered":"

In early January, Tesla Motors (TSLA) confirmed its breakout from resistance at its 200-day moving average (DMA). At that point, I got bullish on the stock from a swing trading perspective. That bullishness came to a screeching halt today. On September 4, 2014, Tesla Motors (TSLA) reached an all-time closing high of $286.04\/share. The stock … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[368,584,219,62,1304,920],"tags":[129,1263,887],"class_list":["post-38132","post","type-post","status-publish","format-standard","hentry","category-automotive","category-bollinger-band","category-high-tech","category-technical-analysis","category-top","category-uptrend","tag-market-sentiment","tag-tesla","tag-tsla"],"yoast_head":"\nToppy Tesla - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Toppy Tesla - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"In early January, Tesla Motors (TSLA) confirmed its breakout from resistance at its 200-day moving average (DMA). At that point, I got bullish on the stock from a swing trading perspective. That bullishness came to a screeching halt today. On September 4, 2014, Tesla Motors (TSLA) reached an all-time closing high of $286.04\/share. The stock ... Read more\" \/>\n<meta property=\"og:url\" content=\"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/\" \/>\n<meta property=\"og:site_name\" content=\"ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"article:published_time\" content=\"2017-02-17T07:27:40+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2017\/02\/170216_TSLA.png\" \/>\n<meta name=\"author\" content=\"Dr. Duru\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@drduru\" \/>\n<meta name=\"twitter:site\" content=\"@drduru\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dr. Duru\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2017\\\/02\\\/16\\\/toppy-tesla\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2017\\\/02\\\/16\\\/toppy-tesla\\\/\"},\"author\":{\"name\":\"Dr. Duru\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"headline\":\"Toppy Tesla\",\"datePublished\":\"2017-02-17T07:27:40+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2017\\\/02\\\/16\\\/toppy-tesla\\\/\"},\"wordCount\":501,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"image\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2017\\\/02\\\/16\\\/toppy-tesla\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2017\\\/02\\\/170216_TSLA.png\",\"keywords\":[\"market sentiment\",\"Tesla\",\"TSLA\"],\"articleSection\":[\"Automotive\",\"Bollinger Band\",\"High Tech\",\"Technical Analysis\",\"Top\",\"Uptrend\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2017\\\/02\\\/16\\\/toppy-tesla\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2017\\\/02\\\/16\\\/toppy-tesla\\\/\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2017\\\/02\\\/16\\\/toppy-tesla\\\/\",\"name\":\"Toppy Tesla - ONE-TWENTY TWO: Trading Financial Markets\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2017\\\/02\\\/16\\\/toppy-tesla\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2017\\\/02\\\/16\\\/toppy-tesla\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2017\\\/02\\\/170216_TSLA.png\",\"datePublished\":\"2017-02-17T07:27:40+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2017\\\/02\\\/16\\\/toppy-tesla\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2017\\\/02\\\/16\\\/toppy-tesla\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2017\\\/02\\\/16\\\/toppy-tesla\\\/#primaryimage\",\"url\":\"http:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2017\\\/02\\\/170216_TSLA.png\",\"contentUrl\":\"http:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2017\\\/02\\\/170216_TSLA.png\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2017\\\/02\\\/16\\\/toppy-tesla\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Toppy Tesla\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#website\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/\",\"name\":\"ONE-TWENTY TWO: Trading Financial Markets\",\"description\":\"Exploring the poetry in financial markets for students of money and economy since the year 2000.\",\"publisher\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\",\"name\":\"Dr. Duru\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"contentUrl\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"width\":900,\"height\":100,\"caption\":\"Dr. Duru\"},\"logo\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.drduru.com\\\/onetwentytwo\",\"https:\\\/\\\/www.instagram.com\\\/drduru_market_breadth\\\/\",\"https:\\\/\\\/x.com\\\/drduru\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Toppy Tesla - ONE-TWENTY TWO: Trading Financial Markets","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/","og_locale":"en_US","og_type":"article","og_title":"Toppy Tesla - ONE-TWENTY TWO: Trading Financial Markets","og_description":"In early January, Tesla Motors (TSLA) confirmed its breakout from resistance at its 200-day moving average (DMA). At that point, I got bullish on the stock from a swing trading perspective. That bullishness came to a screeching halt today. On September 4, 2014, Tesla Motors (TSLA) reached an all-time closing high of $286.04\/share. The stock ... Read more","og_url":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/","og_site_name":"ONE-TWENTY TWO: Trading Financial Markets","article_published_time":"2017-02-17T07:27:40+00:00","og_image":[{"url":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2017\/02\/170216_TSLA.png","type":"","width":"","height":""}],"author":"Dr. Duru","twitter_card":"summary_large_image","twitter_creator":"@drduru","twitter_site":"@drduru","twitter_misc":{"Written by":"Dr. Duru","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/#article","isPartOf":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/"},"author":{"name":"Dr. Duru","@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"headline":"Toppy Tesla","datePublished":"2017-02-17T07:27:40+00:00","mainEntityOfPage":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/"},"wordCount":501,"commentCount":1,"publisher":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"image":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/#primaryimage"},"thumbnailUrl":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2017\/02\/170216_TSLA.png","keywords":["market sentiment","Tesla","TSLA"],"articleSection":["Automotive","Bollinger Band","High Tech","Technical Analysis","Top","Uptrend"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/","url":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/","name":"Toppy Tesla - ONE-TWENTY TWO: Trading Financial Markets","isPartOf":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#website"},"primaryImageOfPage":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/#primaryimage"},"image":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/#primaryimage"},"thumbnailUrl":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2017\/02\/170216_TSLA.png","datePublished":"2017-02-17T07:27:40+00:00","breadcrumb":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/#primaryimage","url":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2017\/02\/170216_TSLA.png","contentUrl":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2017\/02\/170216_TSLA.png"},{"@type":"BreadcrumbList","@id":"https:\/\/drduru.com\/onetwentytwo\/2017\/02\/16\/toppy-tesla\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/drduru.com\/onetwentytwo\/"},{"@type":"ListItem","position":2,"name":"Toppy Tesla"}]},{"@type":"WebSite","@id":"https:\/\/drduru.com\/onetwentytwo\/#website","url":"https:\/\/drduru.com\/onetwentytwo\/","name":"ONE-TWENTY TWO: Trading Financial Markets","description":"Exploring the poetry in financial markets for students of money and economy since the year 2000.","publisher":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/drduru.com\/onetwentytwo\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":["Person","Organization"],"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0","name":"Dr. Duru","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","url":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","contentUrl":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","width":900,"height":100,"caption":"Dr. Duru"},"logo":{"@id":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg"},"sameAs":["http:\/\/www.drduru.com\/onetwentytwo","https:\/\/www.instagram.com\/drduru_market_breadth\/","https:\/\/x.com\/drduru"]}]}},"_links":{"self":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/38132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/comments?post=38132"}],"version-history":[{"count":6,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/38132\/revisions"}],"predecessor-version":[{"id":38141,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/38132\/revisions\/38141"}],"wp:attachment":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/media?parent=38132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/categories?post=38132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/tags?post=38132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}