07Sep10:40 amEST

Mind-Altering Drugs and Markets Don't Mix, Bro

The image of Tesla CEO Elon Musk with a smoking blunt in his hand (and mouth) last evening during a livestream of the Joe Rogan Experience is not the best look for Tesla shareholders this morning, as the stock loses is massive $270/$280 prior support zone dating back nearly eighteen months. 

For a while now, TSLA has mostly been a hands-off stock, with bulls and bears alike claiming victory in the face of various Musk-related headlines. 

But the truth of the matter is that the chart now has a declining 200-day moving average (yellow line, below, on the TSLA daily timeframe) lurking ominously above price to reinforce just how dangerous the current selloff truly is for longs. 

Going forward, if bounces back up to the $270/$280 zone fail, TSLA becomes much more appealing as a short play, though I would still opt for buying puts in lieu of short-selling common stock on this one as a way to express a bearish bet.

Elsewhere, markets are fighting back from an initial post-jobs number selloff. Higher wages may mean higher rates, but I suspect the more pertinent issue for market players is whether bulls can keep the sector rotation game of musical chairs going to stave off a broad market correction this autumn. 

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