Stok Market Update 2.18.22 & TSLA
Market continues to give investors the middle finger as inflation continues to hit everyone on the chin with higher than forecast month-over-month. The Fed consequently stands firm on interest rate hikes. This comes as no surprise, but growth stock does not take this as good news. On top of that, earning reports/calls for some tech stocks don’t seem to point at hyper growth any more (FB, SHOP, AMZN, etc.). The Ukraine situation adds uncertainties and significant influence to growth stocks, including TSLA. Recent dispute between the SEC and Elon as well as autopilot investigations by NHTSA also add to the fudge, although in normal circumstances market and TSLA investors can easily shake off this news. Thus, we seem to be in the middle of a perfect storm that has not gone away.
It is incredibly difficult to buy more only to see your portfolio and hard earned money go in the red day after day, but this is where buying will pay off in the long run. Some good stocks are at 52-week low and we could use the opportunity to load up if at all possible.
As for me, TSLA continues to be my strong buy, but I have been adding GOOGL, SHOP, FB and PYPL as well.
There is no guarantee we will turn green this week, but the reversal will be violent and vigorous, and it will happen — just need to be patient.
As for TSLA, it lost over 5% today and is heading back down to the $853 area. It has been consolidating with low volume and no major catalyst to push it higher, which explains why macro would win in the short term. 200D SMA is now $827, so that is within reach for TSLA. Losing $827 will have significant bearish implications, and predict weeks ahead of bearishness. So far I think TSLA has been holding on far better than other growth stocks, and I hope it will stay above $800 to weather out the bad macros.
The next support level is $796, and below that we may see more pain. $738 is another support.
On the up side, if TSLA can resume above $904, then it can reach $950 and then $987. Above $987 we are running bullishly again. I don’t see this happening unless and until macro changes and/or big news comes out of TSLA.
Stay strong and unemotional. This, too, shall pass!