Talk about the upcoming crisis began to appear, which could catch unawares carefree buyers who are not afraid of any decline, because this has already happened before, so it will be again …
The main feature of the downtrendthere is usually a much stronger amplitude and shorter time frame for a downtrend than a bull market! (example, February-March last year – Tesla shares fell more than 60% in just one month)
This is explained very simply:
When the market grows, there is no particular incentive to buy, in the sense that the participants enter at different times, someone bought earlier, someone later, and someone even doubts to the last …
But when the market begins to fall, then under the influence of fear, a queue begins to line up for the exit, which squeezes into one narrow passage … hence, empty glasses appear, and eager investors to sell shares at any price. This explains the rapid collapse of quotes!
The market is like a pendulum, the more it deviated from the balance in some direction, the faster it will return to the original one!
I guess, that trigger for markets may be the upcoming decline in TESLA shares
Firstly, it is in the promotions under consideration that there are especially many “extra passengers” who flew into the paper on the go exclusively on hype. About the fundamental estimates of the company, I generally keep quiet, the TSLA is not justified dearly when the capitalization of Tesla is greater than the main automakers combined!
Secondly, TESLA has recently been included in the S&P 500 index calculation base, therefore, in the event of a decline, it can pull the whole index and index-forming securities along with it.
Have you noticed, that the company stopped responding to positive news? At the beginning of the year, the stocks in question were trading flat, while the market as a whole continues to grow on expectations of new incentives. Doesn’t that seem to suggest anything? The weakness of a security on a positive conjuncture is the first sign that as soon as the market turns around, this instrument will fall at an outstripping pace, as well as growing in price.
Of the remarkable:
– January 7, 2021 – a large volume of sales for Call options was recorded
– February 9, 2021 – it became known about the sale of shares by the brother of Elon Musk
– February 2021 – Gary Black, former investment director of Goldman Sachs, sold all of his Tesla shares after news of Elon Musk’s purchase of bitcoins
Moreover, this whole story with the purchase of bitcoins by Tesla, the mention of BTC by Elon Musk in twitter, does not happen for nothing. If he and the company actually bought the cryptocurrency, he did it much earlier. Why did you start talking about this only now, and not earlier? And not to obkeshitsya about the crowd ??
I’m looking forward to $ 350-380 per share on the horizon for the next few months.
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