Monday, November 11, 2013

Tesla Hit By Technical Circuit Breaker



Tesla (TSLA) is one of them. In fact, Tesla has almost become a cult movement. I have a hard time chasing overvalued stocks (perhaps due to my frugal German heritage) and sometimes feel tempted to ‘oust’ cult stocks that just don’t deserve their price tag.

This is a dangerous game so I don’t play it often. In fact, there have only been two stocks I’ve ‘ousted’ in the last two years. Back in September 2012 it was Apple (AAPL). Via the September 12 Profit Radar Report I gave this – at the time almost sacrilege – warning and recommendation:

“Aggressive investors may short Apple or buy puts or sell calls above 700.” The rest is history. I have only written once about Tesla in my Profit Radar Report. This was on August 31, 2013: “Every once in a while I like to look at stocks that look too ‘bubbleicious’ to ignore. The current target on my radar is Tesla (TSLA). Tesla is overpriced and the business model is not as sustainable as the stock price suggests, at least in my humble opinion. Read more.

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