Understand that the reversal today is something that happens in the natural course of a stock that's too heavily shorted, but unlike so many of the heavily shorted stocks, this one is the real deal.
Breadth improved -- somewhat -- but while everyone was yapping about Tesla, did you see what's happening with Microsoft?
Sure, TSLA could see a period of sideways price action, but a real peak probably won't come until TSLA bulls start leapfrogging each other with higher targets.
Enjoy the run, but don't get caught holding the bag.
Much of Tuesday's rally is on the backs of hedge funds who -- poorly positioned for the Wuhan coronavirus -- started shorting virus-related stocks right into Friday.
This is not a market acting like it is fearful of a sudden collapse.
I don't think any of the takeaways have to do with the political mess in Iowa, nor the 'State of the Union' address scheduled for Tuesday night.
No, not under the hood of that too-hot-to-handle Tesla, but of stats behind the market to see what's coming (hint: some ups and downs).
Tesla rocketed higher in a move similar to the bubble days of 20 years ago.
RMPIA ended January up 0.8%, but now the damage from the Wuhan virus is weighing on the future.