Member-only story
Over the past few days, Tesla has been skyrocketing higher! Why? Well… There’s a real possibility that Tesla will be added to the S&P 500, FINALLY! This beckons the question: is Tesla the world’s most valuable car company?
The requisite for a stock to be added to the S&P 500 is that it has 4 consecutive, profitable months. This is something that Tesla has NEVER been able to do.
What’s the benefit of being added to the S&P 500 you ask? Well, as soon as Tesla is added to the index, hedge funds can then purchase its stock.
Most large hedge funds typically only buy stocks that are listed on the major indices. Once Tesla is added to the index, it’s game on!
So far, Tesla has had 3 consecutive months of profits. On July 22nd, Tesla will release its earnings. Everything between now and then is speculation!
So whether you love it or hate it, you have to remember the golden rule… trade what you see, not what you think!
This week’s move in Tesla was a massive 18% move. When we examine the move on a chart, it’s OBVIOUS that this move qualifies as a parabolic move.
These types of moves are NOT sustainable!
