A query from Doug Behnfield concerning the placement of stops prompted me to take a look at Tesla’s charts. Like a few other stocks that have benefitted from a still-speculative, bullish change in their “story”  –Facebook and Best Buy come to mind – TSLA launched into a parabola that very quickly discounted the best of all possible worlds. Tuesday’s high overshot, by a marginal 17 cents, a 62.20 rally target (see inset) that had been nine days in coming.

I’d have advised some covered writes up there if  I’d been tracking TSLA at the time. The correction since is ‘impulsively’ bearish, but it should reverse from exactly 55.46 if Tesla is about to get revved up for another charge. However, a two-day close below 55.46, or an intraday print more than 25 cents below it, would imply more downside to at least 52.72 — and also an end to TSLA mania.  From that point forward, a more measured consolidation near, in and around 52.72 would be likely. ________ UPDATE (10:55 a.m. EDT): This morning’s quite vicious short-squeeze — we’ll assume it was a blowoff — has come from a low at 55.71 that lay just 25 cents from the midpoint Hidden Pivot noted above.  I don’t know how many cars Tesla will need to sell to vindicate the $70.48 peak of this morning’s hysteria, but it seems a good bet that that threshold won’t be reached for many years.  _______ UPDATE (1:34 p.m.):  The short squeeze has gotten second wind and targets 96.08.  A two-day close above that number would indicate…128.46. _______ UPDATE: I’m revising those targets significantly downward to, respectively, 86.72 and 104.44, since the original numbers appear to have been erroneous.