Tesla got quite a pop this week on their earnings, as we gave back our gains, but I still like the short, and we got a nice entry allowing us to hold for now. Keep your stop in place, but the pop in the stock is all about the story told, and has nothing to do with the actual metrics, and the reason for our short is that I think the metrics have finally caught up with TSLA and the story is no longer enough to propel the equity higher.

We get PCE, the Fed’s preferred inflation gauge, tomorrow morning. You can see how this market is shaky when a stock like META can get crushed on earnings that are somewhat decent, but the stock was priced for perfection and the market freaked out on the idea of higher expenses and capital expenditures going forward.

Yields have risen dramatically over the last few months as the odds of a cut have diminished greatly, with the 10 Year Note now at about 4.7%, and the Dollar showing continued strength. We will see how the market digests PCE tomorrow, but there is a very real threat that we are in a higher for longer rate regime. Stay tuned for updates!

 

Long TSLS - TSLS Direxion Daily TSLA Bear 1X Shares - at $26.55. Stop is $22.10. TSLS is trading at $26.74.

Long 1/2 position in DIS at $98.75. We will look to add to this position in the future. DIS is trading at $112.27.