Tesla's Last Seduction

Shares of Tesla are down more than 12% as I write this. It truly is a sign of the times of what type of market beast we are dealing with when no one is surprised at all that the indices are green, even if off the morning highs. It was not too long ago when a move like this in TSLA would have clear broad ramifications, if only for a few days. But now we are clearly at that phase in a tech-led bubble where good news is good news, bad news is good news, and indeed all news is good news. That type of action, historically, comes just before the big rug-pull and change in character, despite how hopeless things seem right now for Nasdaq bears. 

First things first: On the TSLA monthly chart, updated below, we can plainly see a symmetrical triangle breakdown spanning several years. Tesla bulls may be seduced into another false breakdown play here to bet on a bear trap/sharp upside reversal. But I see tons more downside from here and momentum (finally) cuts both ways. 

Next, the bad news for tech bears is that they will need a few more sharp moves like this in mega cap monsters in the coming weeks, be it AAPL AMZN GOOGL META MSFT, even AMD CRM NVDA. Simply put, there must be more mega cap tech leaders which see sharp unwinding, beyond TSLA. 

Elsewhere, the USO ETF is breaking above $70 nicely, though it is odd to see energy stocks continue to lag behind.