TSLA Investor Discussions

[ggr]

Closed at $35.96 today, up 5%. Sweet moves on no news and a down day

Yes, nice. Volume was up today too, getting heavier towards the end of the day. Starting to smell like the desired short squeeze to me.

 

[VolkerP]

There is one news coming. And this one should be the bang we need.

I was wrong with the 6/22 event. I was disapointed but I get it now (once more). The launch will be Apple-ish. They will wow the planet.

So far, the event might be on 7/27. Market seems to start getting it...

Ah yes and they will reveal the final interior at that event. :tongue:
I imagine putting you and cali in one room. Or even better in one cardboard box atop Bonnie's baby turtle. An then feed TSLA ticker tape through the slots.

 

[Steph]

Ah yes and they will reveal the final interior at that event. :tongue:

How did you know? :biggrin:

 

[Uncle Ron]

EDIT,,

 

[Johan]

Just for fun, let's say an investor had shorted the stock at $25. At $40 his Depends are soaked and buys to cover. He doesn't want the stock but he's out $15 and now thinks that a squeeze is on so he holds causing more of a squeeze. Domino effect until those who do not want the stock long start to cash in.

This is going to be lots of fun to watch...:smile:

Since the short interest has been consistently high for a long time (not just since after TSLA was $39) I think it would be fair to presume that many actually did start shorting the stock in the $20's? I would start to get scared now...

And yes, it will be fun to watch but even more fun to try to cash in on it at the right moment.

 

[Johan]

Yes, nice. Volume was up today too, getting heavier towards the end of the day. Starting to smell like the desired short squeeze to me.

Yes very nice volume in the last hour. But could also be technical traders who are now getting in on the stock in anticipation of a squeeze? Which in turn of course helps trigger the squeeze, so nothing wrong with that Bottom line is the shorts will suffer.

 

[Uncle Ron]

EDIT,,

 

[Steph]

Yes very nice volume in the last hour. But could also be technical traders who are now getting in on the stock in anticipation of a squeeze? Which in turn of course helps trigger the squeeze, so nothing wrong with that Bottom line is the shorts will suffer.

We have a perfect storm coming.

1. Predators are getting in, they smell the fear of their victims. Price is getting up.
2. Big reveal on 7/27. They will tell the world. The world will be wowed. Price is racing to record highs every days.
3. People learn about Elon and all he is and did. Hype is building, a buble is forming.
4. Pessimistic views are now replaced with over optimitic views. Price has no connection with reality.
5. I hope you sold just a bit before #4.

 

[ckessel]

2. Big reveal on 7/27. They will tell the world. The world will be wowed. Price is racing to record highs every days.

Was something announced for that date? I missed it.

 

[Steph]

Was something announced for that date? I missed it.

No. Not yet.

But I saw two clues so far, 1. a tweet by @jason Twitter / Jason: Looks like @wsj believes t ans 2. I saw in a post here that SSL #4 got a delivery date for the week of 7/29.

Other clue is they like to do event on Fridays. (I guess because they can drink)

 

[smorgasbord]

Just for fun, let's say an investor had shorted the stock at $25. At $40 his Depends are soaked and buys to cover. He doesn't want the stock but he's out $15 and now thinks that a squeeze is on so he holds causing more of a squeeze. Domino effect until those who do not want the stock long start to cash in.

This is going to be lots of fun to watch...:smile:

Actually, what happens is that the shorter is FORCED to buy the stock due to margin requirements. It doesn't matter if he's got nerves of steel unless he's got the cash to back it up.

From http://wiki.fool.com/Short_squeeze:

Remember that a short position starts with borrowing (through your broker) the shares of stock you've sold. The brokers who have loaned out the stock can also require the short-sellers to return the shares, meaning that the shorts must buy the stock themselves or risk a forced "buy-in" by the brokerage firm (that is, the broker buys back the stock for you). Because brokerage firms aren't very picky about paying a good price on such occasions, the stock can spike dramatically, especially since market makers responsible for providing liquidity for a stock often see forced buy-ins as an opportunity to make a quick killing by temporarily raising their prices. Forced buy-ins may result from a trade going so much against a short-seller that he gets a margin call from the broker to either put up more cash or risk losing the position. Other times, it simply represents a change in short-term supply and demand exacerbated by increased trading volume and rapid turnover.

Let's say a heavily shorted company announces positive news that brings in new buyers. This demand pushes the stock higher, but it also leads some old holders to sell. The stock moves from one broker to another. Short-sellers who had borrowed shares from these old holders may have to cover the short position if their broker can't find new shares for them to borrow. This creates more demand, which pushes prices higher and continues the process. As you might expect, short squeezes often come in waves that attract momentum-oriented investors who see a stock rising and jump on for the ride. This additional demand, in turn, exacerbates the squeeze. Of course, these momentum investors usually jump ship quite rapidly when the momentum changes, adding to selling pressure later.

 

[Johan]

But (ref. my post above) are there not some short-sellers (institutions) who are so financially strong that they can "ride out" a squeeze? And do we know what hides behind the 23M shorts number? Could be many smaller shorts (who will be forced to cover when they get margin calls) but could also be some big institutions with the liquidity to "not cover"?

 

[ckessel]

Other clue is they like to do event on Fridays. (I guess because they can drink)

:scared: Wait, I can only drink on Fridays?! Crap, there go my plans for the week!

 

[Uncle Ron]

EDIT,,

 

[Uncle Ron]

EDIT,,

 

[Steph]

But (ref. my post above) are there not some short-sellers (institutions) who are so financially strong that they can "ride out" a squeeze? And do we know what hides behind the 23M shorts number? Could be many smaller shorts (who will be forced to cover when they get margin calls) but could also be some big institutions with the liquidity to "not cover"?

My guess, and this is just a guess. True investors would not touch this stock on the short side even with a ten foot pole. They may short on down market, but I don't think anyone with a slight notion of financial common sense would short this company at this point in time. So, no strong institutions are short. If some of them are, they have stop loss. These traders are not driven by sentiments, maths and analysis is their tools.

Individual investors (let's call them idiots) are the one shorting this stock. They have no idea what's coming. Just like the same idiots bought in the internet bubble, the housing bubble, the gold bubble, etc...

The world will never run out of idiots, they are our #1 cause of GDP growth.

 

[Johan]

Individual investors (let's call them idiots) are the one shorting this stock. They have no idea what's coming. Just like the same idiots bought in the internet bubble, the housing bubble, the gold bubble, etc...

The world will never run out of idiots, they are our #1 cause of GDP growth.

Idiots with a jobs yes, idiots with inherited money or lottery winners. People laying in their hammock all day drinking beer and watching their stock price going up, up and up don't contribute much to GDP

 

[Citizen-T]

But (ref. my post above) are there not some short-sellers (institutions) who are so financially strong that they can "ride out" a squeeze? And do we know what hides behind the 23M shorts number? Could be many smaller shorts (who will be forced to cover when they get margin calls) but could also be some big institutions with the liquidity to "not cover"?

Yes and no. Yes there are institutions that are that strong. But those types of investors have very stringent rules for trading and will cut their losses at some predetermined level regardless of what the believe. It's called risk management.

Sent from my DROID RAZR using Tapatalk 2

 

[smorgasbord]

Ah yes and they will reveal the final interior at that event. :tongue:

Post of the day!

 

[Uncle Ron]

EDIT,,