Some Bad Guy Talk from Tesla, Solar City

Elon Musk may very well need to resort to "bad guy talk" to weasel his way out of this situation, as reports surface of a cash squeeze for both TSLA and SCTY. 

There is no doubt that TSLA, at one point, had the makings of a long-term super stock. However, the market set the bar extremely high for Mr. Musk, and he has clearly not answered the bell. When that happens, momentum can unwind rather harshly.

In other words, Tesla may just now be getting started rolling downhill. So I suspect it makes sense to steer clear of bottom-fishing the name for a while.  

We had TSLA as a short idea on the Watchlist for Members within the last week. But in all fairness it is indeed tough to short that type of a high beta play when the indices linger near all-time highs. Thus, again, being flat makes sense. 

Elsewhere, CRM is looking an awful lot like HSY these days, in terms of holders not getting the seemingly inevitable buyout. This is another risk we talk about for Members quite a bit--We want to have a few reasons beyond the prospect of a buyout to be long a name. 

All in all, staying light and tight is still the short-term plan until after the holiday. It may very well take until the middle of September before the market feels back at full force. However, you can be sure that taking the time to revise and refine watchlists of the best sectors and stocks is a worthwhile endeavor.