It's OK to Be a Turncoat in the Market

Years ago after Tesla's jaw-dropping rally well into early-2014 I remember that I garnered quite a bit of internet support from noted TSLA and Elon Musk bears who would have loved nothing more than to see the stock, CEO, and company burn to the ground. At the time, I simply saw a chart so extended that the likely outcome was either sideways or down over the the next few months of quarters. 

Since then, TSLA flopped around sideways in a sloppy range for a few years before eventually breaking higher yet in the spring of 2017. After that spirited spurt higher, TSLA then reverted to another sloppy range up until the stock woke up earlier this autumn. 

As we have periodically noted on this website and for Members in recent weeks, TSLA has been acting better and better from a technical perspective. 

And with the strength today, as seen on a tightly-coiled consolidating daily chart, updated below, in the face of a red tape it only drives home the point that TSLA continues to impress. At a minimum, even the most steadfast bears need to take notice of this improved price action. 

Furthermore, barring some type of nasty news the stock has the look and feel of eventually wanting to overtake $400 to usher in a fresh breakout to all-time highs in the near future. TSLA remains a hated and heavily-short name. But the bear thesis from a technical standpoint is becoming weaker by the week. And if we see that push to $400 for the holidays it sets up a painful start to the new decade for Tesla bears who become so dedicated to the cause that they went down with the ship instead of becoming the trader mercenaries they should have.