This morning I shorted TSLA and XLY. With the confidence that readers will not do what I did simply because I did it, I wanted to provide a visual of why I shorted them. <insert here> the usual words about how interest bearing cash is the best risk manager and market defense player there is right now. But in covering my SPY short, I was ripe for a couple new ones as the market thus far fails to take any contrary bull bait.
Here is a short-term potential double top in TSLA. I don’t like that it’s above the SMA 200, but if it fails that and the SMA 50 I’ll sure like it. XLY is well below its SMA 200 (168.75 and trending down, not shown on this chart) and recently cracked and failed to take back the SMA 50. My tolerance – if the stock market manages to put on a relief bounce – is the red dashed line on TSLA and the SMA 50 on XLY.
Just an FYI update because sometimes you gotta break away from the indicator nerd stuff and just have a little fun.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.
