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Tesla short vs long

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I notice on IG that 64% are short on Tesla.

As Tesla has been rising $100 over the last 15 trading days this to me does not make much sense.

Would not the shorts been stopped out long ago in this rise?

I have done very well out of this rise!!!!!

 

Thanks in advance

Bob

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What about tax in UK 

I know profit on spreadbetting is taxfree but you have to pay tax on profit using CFD

But what happens if you make a loss on trading CFD, can you use it in some kind of deduction if you have other income?

 

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1 hour ago, Kodiak said:

What about tax in UK 

I know profit on spreadbetting is taxfree but you have to pay tax on profit using CFD

But what happens if you make a loss on trading CFD, can you use it in some kind of deduction if you have other income?

 

yes, knew I'd seen this somewhere, just found it again;

https://www.ig.com/uk/spread-betting/spread-betting-vs-cfds

image.thumb.png.842c9bcbfd48073d592e1cf7afa05ad6.png

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Sounds like CFDs would actually be better for retail clients, since most of them lose money they would benefit from the tax offset. 

CFDs are made to sound like a 'real' investment vehicle for professionals, while 'spread betting' for the little fish and the punters.  But in reality it's all the same.

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Apropos of stocks - if you're bullish, go for call options.  None of this fannying about with getting stopped out when 'news' is released of new share issues or new debt being issued by the company, which insiders knew of long before you and manipulated to their own advantage, and is manifested is crazy gapping spikes up and down before settling down again.

 

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On 28/12/2019 at 22:54, tesla101 said:

I notice on IG that 64% are short on Tesla.

As Tesla has been rising $100 over the last 15 trading days this to me does not make much sense.

Would not the shorts been stopped out long ago in this rise?

I have done very well out of this rise!!!!!

 

Thanks in advance

Bob

An older article on this: 

Tesla share price zooms past US$420. More gains coming?

Tesla is now up at around $430.. will it reach the $500 mark??

The Favourable conditions section is the part I found most useful. 

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Tesla is the 'front runner' in electric cars when it comes to the retail market. Just travel to Los Angeles and you will see how many people are now driving Tesla's. The Tesla 3 is a game changer for them as it makes the car more affordable to the mass market. Also with attractive lease and PCP deals it means more people have the potential of getting into a Tesla 3. 

If you observe around the UK then you will the how Tesla has the most effective and efficient 'infrastructure' when it comes to charging points against its competitors. Again in Europe, Tesla, has done something similar. With home charging now becoming a reality for people who own electric cars and the end of diesel and petrol in years to come being confirmed by governments it means electric cars are a reality and Tesla leads the way as it leverages its first mover advantage.

I think longer term the Tesla price could rise so there is a compelling investment opportunity but from a trading perspective it could be more difficult especially if we were to see a major sell off in US shares in 2020. This could domino into the Tesla shares declining. I think a longer term 'dollar cost averaging' or 'pound cost averaging' method of acquiring the shares is the way to play Tesla for the longer term. 

 

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@CharlotteIG,

The problem with trading Tesla is that even though the fundamentals of the company may be getting stronger if there is a sell off in US equities as institutional investors and institutional funds take profits then Tesla will be caught in the sell off. 

This is why I think investing in Tesla for the long term is one thing but trading it on technicals is more difficult as even though one may be tempted to go long there could be a sell off or correction in US equities (indices) soon which could cause a large drop. I would be tempted to wait for the next big drop on Tesla before going long as I think the longer term trend manifestation will continue upwards with Tesla and there may be a better entry point ahead. Of course it could easily continue going up in which case the current entry point would have been attractive. These are the tricky decisions traders have to make and a lot will depend on their trading style and trading strategy. 

For me I am content with investing in Tesla rather than trying to trade it. 

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32 minutes ago, TrendFollower said:

@CharlotteIG,

The problem with trading Tesla is that even though the fundamentals of the company may be getting stronger if there is a sell off in US equities as institutional investors and institutional funds take profits then Tesla will be caught in the sell off. 

This is why I think investing in Tesla for the long term is one thing but trading it on technicals is more difficult as even though one may be tempted to go long there could be a sell off or correction in US equities (indices) soon which could cause a large drop. I would be tempted to wait for the next big drop on Tesla before going long as I think the longer term trend manifestation will continue upwards with Tesla and there may be a better entry point ahead. Of course it could easily continue going up in which case the current entry point would have been attractive. These are the tricky decisions traders have to make and a lot will depend on their trading style and trading strategy. 

For me I am content with investing in Tesla rather than trying to trade it. 

Do you have a low price in mind or just waiting for the bearish movement then when it turns bullish, buy back in?

 

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@CharlotteIG,

My first price target is at least the 20 DMA on the 'daily' of around 37500 area. Now it could end up higher than this as the DMA's change day by day depending on historical price action. 

683006233_TeslaMotorsInc(AllSessions)_20191230_19_50.png.87e12420c75d1c67141ba060ebc2907e.png

If that gets taken out then my next price target would be the 50 DMA on the 'daily' but for now I am anticipating a move down towards the 20 DMA. If this does not materialise then it could prove to be rather bullish for Tesla and we could see a sharp upturn but the price action with either confirm or reject my assumption. 

If major US indices continue their decline then I expect Tesla to be taken down with the likes of Apple, Netflix, Microsoft and Tesla play an important role in them. 

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5 hours ago, CharlotteIG said:

Jeremy Naylor has also done a short video on TA for Tesla. Let me know what you think. 

It's okay, he didn't really talk about waiting for a dip and then buying back in.  You don't want to be basing your decisions purely off the daily chart either.  Start with weekly and home in.

I think SB on stocks is just plain dumb, if you think the value will increase buy a call option and you won't get stopped out by the 'crazy spikes' that suspiciously appear now and then, almost as if it is some sort of mechanism to shake out stale longs and force people to buy back in (hence generating more revenue for SB provider in the form of another juicy spread).

Edited by dmedin
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I am glad to contact all of you. Could I ask u to teach me for selling CFD stocks as follows;

1.

Do I have to pay another extra charge to sell besides risk premium min. USD15.- each.

2.

Approximately how many percent % do I have to pay in case of overnight for next day. Your just riugh idea woukd be ok for my understanding.

 

Your kind information woukd be very helpful for me.

 

 

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On 30/12/2019 at 10:53, TrendFollower said:

Just travel to Los Angeles

Will do :D

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My assumption has been rejected and the price action has proved to be rather bullish.

There must be a sharp pullback at some stage. I just wonder if it is going for the round psychological number before doing so with speculative capital driving it towards there first. 

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4 hours ago, Yoo said:

I am glad to contact all of you. Could I ask u to teach me for selling CFD stocks as follows;

1.

Do I have to pay another extra charge to sell besides risk premium min. USD15.- each.

2.

Approximately how many percent % do I have to pay in case of overnight for next day. Your just riugh idea woukd be ok for my understanding.

 

Your kind information woukd be very helpful for me.

 

 

The Tesla chart is looking good with a super candle yesterday. Note the Forward (Futures) options to trade if you are looking to hold for the longer tern and avoid paying any over night charges, may have missed the boat this time round though, may want to wait for the next dip.

image.thumb.png.6de1a5794ccf081327ab54b4f46c733c.png

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Quick read on what you need to know. In the news and analysis section of the platform but thought it would be good to post it here too: 

By Monte Safieddine

Stock market value tops that of GM and Ford combined

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Tesla Overview

It’s been a volatile session (to say the least) for Tesla’s stock price, surging to fresh record high after fresh record high, and in the process taking its market capitalization to higher than that of car giants GM and Ford combined.

Although there are plenty of catalysts including a third-quarter profit that surprised analysts, its Chinese factory online and delivering to the world’s largest car market, and global deliveries that beat expectations, the justification of current price levels are startling analysts as the company struggles to turn a consistent profit, and where its deliveries dwarf that of the competition by a significant margin.

Tesla delivered over 367,000 vehicles for 2019 – about a third of that in the last quarter as deliveries picked up – but stands in significant contrast with GM and Ford’s deliveries at more than 2m each.

This is occurring at a time when car companies are struggling globally and car sales are dropping, and where established automakers attempt to shift to electric vehicles to diversify their lineup ahead of changing regulations.

And then there’s the tech factor, as it’s no surprise that tech stocks have been outperforming as of late and with the Nasdaq at fresh record highs buoyed by Tesla which amongst the tech index’s components was at the top of the performance chart yesterday. Viewing Tesla as a tech company instead of a car company has certainly aided the hype, even as the company struggles to consistently deliver when it comes to profit and cash flow, and where the orders consist largely of low profit margin Model 3’s instead of its Model S and X where the profit margins are significantly higher.

Tesla Technical analysis, overview, strategies, and levels

From a technical standpoint, all its main technical indicators are flashing green, with its price above all its main moving averages, a positive DMI (Directional Movement Index), and a trending ADX (Average Directional Index). And the same holds true when shifting to a longer-term weekly overview.

However, with the gains this sizeable and bullish movements occurring intraday as well, that translates into pivot points at greater risk of breaking than holding.

A volatile technical overview then that supersedes a bull trend, and in turn means breakout strategies on its main pivot points for limited profit-taking may be more conformist to its current technical overview than contrarian reversals that may be at risk of getting more easily stopped out, especially if the short squeeze continues.

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IG client sentiment and Nasdaq short interest for Tesla

In terms of sentiment, retail traders are holding a bias opposite the recent bullish moves at a majority short 65% as per IG’s client sentiment.

And if other traders have been basing their positioning on analysts’ opinions, they are likely holding a bias closer to the middle given the contrasting opinions of where the stock price ought to go with nearly a third holding a buy view, a third holding a sell view, and a third on hold.

As for Nasdaq.com’s latest short interest figures, as of mid-December they have reduced it to levels unseen since February of last year, as during the bullish surge they upped their short positions from about 26m at the start of last year to a peak of 41m by the end of July before reducing it back down again as the pain of price increases forces shorts to unwind.

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Quote

Many of the complaints report sudden acceleration incidents when attempting to park vehicles in a garage or at a curb. Others claimed the sudden acceleration happened while in traffic or when using driver assistance systems and led to crashes.

 

In one complaint, a driver said a 2015 Tesla Model S 85D in California was closed and locked when he claimed “a few moments later the vehicle started accelerating forward towards the street and crashed into a parked car.”

A Tesla driver in Avondale, Pennsylvania, was pulling into a parking spot at an elementary school when the vehicle accelerated on its own, the complaint said adding: “It went over a curb and into a chain link fence.”

https://uk.reuters.com/article/uk-tesla-probe/u-s-will-look-at-sudden-acceleration-complaints-involving-500000-tesla-vehicles-idUKKBN1ZG1IW?il=0

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two signals here  - reversal off the top of the channel or a breakout up out of the flag

Capture tsla.PNG

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The very definition if a melt up.  Got a little more to go though if the 1H chart is anything to go by.  Need to see a NMD of a higher high.  Not something worth trading for me but interesting as it related to the over exuberance always seen at the end of a cycle.  When this one collapses that will be a signal...

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Very short video of Tesla movement this week. Reports of Elon Musk potentially becoming the first individual trillionaire in the world. 

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Stock price vs IG Clients % long positions over last few months.

As the stock started moving up less clients went long, with a big drop last week as the stock rose even more. And the last few days as the stock has popped higher clients are now shifting back into long positions.

At the moment it's up over 3% in the pre-market.

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Data provided by Excel Price Feed

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IGSquawk Retweeted

Joe Colangelo  @Itsjoeco

18h

4,000 Robinhood traders just bought $TSLA for the first time, above $700

 

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So TSLA up over 20% today.

I've just updated one of my spreadsheets, interesting to see how the "upstart" manufacturer is getting close to Toyota to gain the number 1 spot by market cap!

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10 hours ago, CharlotteIG said:

Reports of Elon Musk potentially becoming the first individual trillionaire in the world. 

Bernie Sanders for President 🇺🇸

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11 hours ago, dmedin said:

Bernie Sanders for President 🇺🇸

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21 hours ago, Caseynotes said:

4,000 Robinhood traders just bought $TSLA for the first time, above $700

image.png.996ea6ebf32af70df278360e181a3cc1.png

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19 minutes ago, Caseynotes said:

image.png.07921c470a3d2ccb989842b0e0225a94.png

 

He's got a plan ... tax a wee bit of Elon's trillions and use it to build, you know, useful stuff for ordinary people :)

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