Good numbers coming out of Tesla last night. Free cash flow positive, and margins increasing. Of course the illusion of greatness is now fading, and the reality of "pretty-damn-good" is kicking in, so the market must sell it off. (AMZN will have a cluster-fuck day when it's time comes.)
Tesla' valuation is only limited by ones imagination, but now that it is declining, let's look at a realistic trading pattern. Last time tesla broke its weekly 50sma, it saw about a peak 15% decline from the moving average.
Assuming the same can take place, if the 20sma is broken from near-term declines, tsla may approach $80-90.
Looking to play tsla on the long side at those levels. Until then, will still look to trade on the short.