Yup. They are making the huge mistake of averaging down. This us tough for professionals, much less those who think stocks just go up.
Fox Business News had this dude on and he said he bought a $1 mil worth of shares of TSLA and will buy more on the dip. This was the day before yesterday. TSLA came back some but knowing that the MM said they have nothing proprietary and it is realistically worth $150/share, would make me worried. I had a 0-day TSLA put credit spread but I was scared out of it (with a very small loss), albeit it would have been profitable. I am done with these bastardly credit spreads. There are evil. I had a chance to make a couple of hundred or lose a thousand or more. I had a feeling they will slam TSLA before the close. Why did I sell a put credit spread if I am bearish on the stock, stupid me? I am too quick to cover a losing/risky position, that is also not too good. Edit: Aftermarket TSLA just jumped off the cliff. $400-393 and recovering...
I wouldn't. After this massive rally, there will be some correction + september and october are potential correction months.
This is what professional talkers and writers like to say; If the price drops, just hold it for many many years. Ultimately the price will surely go up.
It used to be that retail would buy the tops then institutions would crash the market. It seems now with so many internet articles that retail has learnt to buy the bottom or maybe just but the dips.
I think Tuesday will confirm a bottom reversal on TSLA. Could go up for a day, or several days, possibly a few weeks but it won't go as fast and hard as the several weeks previous to this selloff. The invincibility of the stock has been debunked now, and half the fanboys have left the field with their heads hanging low and pockets inside out. Still it may take a broken climb up to $600. I am counting on $538 before elections. I might buy a handful of shares Tuesday if I see a confirmation. The day chart looks good for a rally, along with the hour chart. Look at Thursday's candle... only 23c between open and close. Then yesterday green candle, 110M shares. I would feel more certain if it had touched my lower Bollinger line but it is deep in the lower band and definitely headed toward the center which for me is 9EMA. If you look at the last 5 candles of the 5 minute chart in the post-market, there is a nice trend there. The 1945 candle pushed up through my upper Bollinger limit (2 std. dev.) but did not bounce down in a reversal. It just took a slight downward correction and then ended the day with an up candle and some decent volume. So on three timeframes it looks like if not a safe bet, at least an interesting one. If this was the premarket action I would be buying, with a stop at $383 or so, then moving it up above break-even on the first green candle completely above 9EMA. Too bad the traders that were pushing tech stops up so high are now going to be as a group somewhat discouraged. It was a hell of a nice run with the bulls. That may be the last one we see like that, before the next crash. Meanwhile this sizeable dip has blunted the edge on the rally but I don't think it has truly ended.