Electric vehicle mania is well under way!
Silicon Valley-based $TSLA and Shanghai-based $NIO are moving higher and higher and providing us amazing opportunities for trades. Even after its stock split, Tesla is going higher, although the market is in the middle of a pandemic and the economy is slow. Nevertheless, Tesla is still making all-time highs. Day trading celebrity, Dave Portnoy, has suggested that Elon Musk should keep splitting his company’s stock in perpetuity. He tweeted on Monday:
That wouldn’t be bad for us day traders!
It’s a strange world we are living in. I found this comparison of Tesla stock and a Venezuelan stock index (a country that is experiencing one of the worst periods of hyperinflation in the world right now) quite interesting:
Does all of this mean that we will soon see a big correction? Not really, the market can stay irrational longer than any of us can stay liquid. The only thing a trader should do is look at the price and read the market’s signals. Our personal opinion about what the market should or should not be doing does not really matter. We are in a market where Robinhood traders are making more money than professional traders, and value investors are scratching their heads. Regardless of what’s happening out there, do ensure that you are always on the right side of your trades, and do not argue with the market.
With that said, some members have been asking: How do you trade a reversal in these markets?
To your success,