Tesla Stock Just FLIPPED.. (URGENT)

it has finally happened ladies and gentlemen Tesla's stock is down about 5 1/2% at the time of recording this video and we know exactly what's happening it really has to do with bond yields and tomorrow's economic data which will be coming out that is of course CPI CPI and Tesla kind of go hand inand but it's not just Tesla the rest of the markets are also selling off following the rally that we have seen ever since November 5th when Trump became the president elect of America the RSP the equal weight S&P is down almost 1% today this is a market wide give back or consolidation if you will of some of the gains that we have seen recently now believe it or not we actually have some huge news today for Tesla a lot of different pieces of news that I think are going overlooked just based on obviously Tesla falling about 5 1/2% but really because the markets are just having a weak day today with that said news came out today that last week Tesla insured 17,300 new Teslas in China last week the strongest week of Q4 so far and tied for the third best week of 2024 Tesla China is killing it as I reported late last night Tesla short sellers lost over 2. 6 billion yesterday alone according to data from S3 Partners S3 says quote the pain might not be over for Tesla short sellers we expect a continued short covering in Tesla due to the rally inducing short squeeze which will force out many of the 2. 4 million shares we saw short over the last month their losses now total nearly $8 billion since Trump's election win last week and nearly $1 13 billion since Tesla's Q3 earnings report in October so S3 Partners a data analytics firm believes that Tesla is going to continue to experience a short squeeze now this might not look like the case today but I believe this will be a short live consolidation period which is actually very healthy for Tesla you don't want to see Tesla just go up in a straight line because then your odds of a larger correction to the downside grow grow more to see a 5 % just kind of take some of the momentum away take some of the exuberance away let us get back on a track of upside is actually very healthy it also helps reset some of your momentum barometers like the RSI which is now back down to a more normal range at 71 whereas even yesterday it was at 82 so this 5% little draw down today is doing a lot to correct the momentum or the the over momentum that we seen to the upside in Tesla stock recently and I have said this here on the channel many times over the past two weeks or so that eventually we would get some consolidation we would get some downside and that that would actually be a healthy process now as I said at the onset of this video there's no real Rhyme or Reason to what's going on with markets today bond yields are soaring 12 1/2 basis points stocks across the border getting whacked the Russell 2000 down 1 and a half % NASDAQ down 0.

4% S&P down half 1% and the Dow is down 0. 7% the vix though what's interesting about today is the vix is not moving that much it's only up about 9 cents or or or nine points at 15. 06 only up 0.

60% today it's not like there's a lot of fear or a lot of Hedges being put on portfolios today it's like this was kind of expected and it's not causing the Bulls to become overly negative which I do think is surprising typically on a day when the Russell is down 1 and a half% you're going to see the vix Up 3 to 5% on a pretty pretty regular basis with that said one reason for bond yields moving higher today could be what former fed policy maker Lorita Meer just said last night she says the market is Right former fed policy maker Meer sees fewer Fed rate cuts next year after Trump's Victory but the real reason for this drop today in my personal opinion in Tesla in interest rate sensitive stocks is the expectation that CPI will come in a little on the hot side tomorrow now we'll talk about this more in the next video but core inflation month over month is expected at 0. 3% clearly there is a fear today that inflation could come in higher than that and that's why your risk on areas of markets are selling off more today core year-over-year is expected at 3. 3% the same as last last month we came at 3.

3% last month as well headline month over month is expected at 0. 2% same as last month and headline year-over-year is expected to actually go up from 2. 4% to 2.

6% so there is a fear that maybe inflation will come in on the hot side and that'll pressure the FED to be less accommodative although I think at this point depending how today actually shakes out if if we continue to sell off throughout the day we could enter into tomorrow in a pretty good setup even if we do come in around expectations on CPI it looks like the markets are doing a lot of that pricing in today like you you would expect a larger selloff on hot CPI if markets rally into it you're kind of selling off right into it which just means that some of the move may be already getting priced in if we do get hotter than expected CPI now there's a chance that CPI comes in lower and markets are pleasantly surprised but I think it's really just a toss up at this point in other Tesla stock news today deut Bank analyst Edison Yu reiterated a buy rating and a $295 price Target on Tesla The Firm believes the Market's reaction supports the view that the new administration's approach towards Elon musk's Endeavors quote will likely be much different going forward DOA could Envision the new Administration in setting robotaxi standards at the national level to make approval of deployment faster and should the inflation reduction act get repealed or changed or extra tariffs get levied for imported Parts Tesla's relative competitive position would only strengthen the analyst contends AP Morgan also says with a new note out today that Tesla is seen as a quote must own stock in Trump 2. 0 the rally will likely continue and Morgan St gives Tesla's Optimus humanoid robot opportunity an implied present value of $485 per share so translation here uh you could see a lot more upside in Tesla stock just based on a fundamental basis not a short squeeze not a gamma squeeze but fundamentally Tesla stock could continue higher for a while wayo announced that starting today wh's 24/7 driverless Robo taxi rides are now open to to everyone in Los Angeles previously you could only ride after after you received an invite from the company the waiting list was 300,000 people long fortnite the game which has over 230 million active active monthly players has introduced a new cybertruck bundle Tesla's energy division just broke a new record internally with the Tesla Nevada team that just built a th000 power wall 3s in a single day Western lensman says meanwhile over at Tesla and shows Tesla stock going absolutely crazy in recent days and Elan musk responds to this and says as the chart shows nobody takes the lying Legacy Media seriously anymore they are a clown show and he's really referencing the media that has bashed Elon for his prot Trump stance and really bashed Tesla as a company for years now and clearly Tesla is doing something right today we did get the October nfib small business optimism index that is up to 93. 7 versus the estimate of 92 and 91.

5 for the prior month the Outlook still net negative but at the highest it has been since November of 20120 expectations of sales higher of higher sales improved as well as the share of respondents saying now is a good time to expand as far as Tesla option activity today even though the stock is down about 6% now at the time of recording this video hedge funds and institutions they're not giving up that easily on Tesla they are still very bullish you see today 254 different option trades totaling 226. 50 6 million with a positive order value of 83% 83% positive order value in options from big money on a day where Tesla's down 6% that is very bullish that's very bullish for a continued rally in Tesla now if we take a look at the short interest off fre flow that has recently Fallen a little bit from 2. 84% down to 2.

79% but that's a drop in the bucket compared to the overall short interest and how many shares that are currently sold short you have $ 27. 29 billion sold short in Tesla totaling about 77. 9 million shares that are currently sold short so there is a lot of shares that still need to be covered on that likely will be covered on over the coming days and weeks now here on the date today you have returned shares of 496000 and borrowed shares of about 46,000 that means total today you have about 450,000 shares that are being covered on and uh well that's always a good sign when you see shorts covering on red days that's what should happen that means shorts they're taking the first opport opportunity they can to get out of some of their short positions that's a sign that you know hedge funds and institutions they're like hey we're going to take this opportunity to get out because this thing could run even further Google Trends data for the Tesla lineup is also looking pretty good if we look at worldwide Trends cybertruck trending upwards the model y went from 34 to 37 great news model 3 from 29 to 32 the model S still at 13 and the model X went from 8 to 9 so definitely some solid Trends if you look at worldwide if we look at the United States which has been one of the the weak areas for Tesla in recent months you can see an uptrend in search activity as well the Cyber truck going from 32 to 36 model y from 22 to 26 the model 3 from 19 to 22 the model S from 10 to 11 and the model X from 8 to 9 so overall solid search Trend data that we are seeing across the board for Tesla which is a great sign for Tesla's Q4 which we need over 515,000 deliveries to kind of Meet the expectations that have since been set from Tesla's last earnings and here on the day today sentiment is actually a little bit better for Tesla than we had yesterday yesterday's sentiment was bearish at 36 today it's bearish at 41 so that's a little bit better message volume is coming in high today at 64 yesterday it was high at 61 and the participation ratio today is normal at 54 while the bulk of earnings for the S&P are already over with as far as a market cap waiting basis we do have some earnings today and after hours with SoundHound Marathon digital Cava Spotify oxy biostem rocket companies or rocket mortgage Tera wolf and instacart percent of stocks trading above their 50-day moving average today is falling pretty sharply uh down to about 63 and a half% down about 4.

2% on the day today so some broader Market weakness is what we are feeling what's actually interesting though is the fear and greed index today is actually moving higher so yesterday we closed at 67 and today you're at 68 so the greed index actually went higher today even though mark fell which doesn't make a whole lot of sense if we're being honest in the next video we will go over more specifics around Tesla and the data coming out tomorrow how the data will impact Tesla but I have to say I think this is that consolidation that we've been talking about here on the channel for a while now I don't think this is the start of a larger downturn I I don't think this is the end of the squeeze or the end of the rally that we have experienced lately I think it's a normal digestion period with some consolidation as you can see again the RSI is now at 69.