ladies and gentlemen welcome back to another hopefully great week for Tesla stock question is does the short squeeze that we seen last week continue this week if it does Tesla could be hitting new Tim highs potentially by the end of this week now here in this video I will give you the latest details of everything you need to know specifically in regards to Tesla we will also obviously go over option activity short interest positioning for this week sentiment barometers that have to do specifically with Tesla but look at this Bitcoin is up 1. 88% in the last 24 hours hitting a new all-time high of 81,1 165 just about an hour or two ago Bitcoin is continuing its rally this is a risk on asset that has a heavy correlation with Tesla when Bitcoin does well Tesla tends to do well when Bitcoin does well generally speaking risk on assets tend to also do well this is biofarma these are small caps these days that's also the Dow which is an economically sensitive index so here in this video I will explain everything you need to know briefly give you a look at the earnings for this week as well as the economic calendar your biggest events when they will take place and what you need to know in regards to them so first and foremost let's kick this video off with Tesla Tesla stock was up 8. 19 per on Friday up a half of 1% in after hours trading Tesla stock had a high on Friday of $ 32871 closing the day at $322 79 per share that's a breakout about as clean of a breakout as you could possibly get we not only broke above $300 per share we soared above $300 per share so good news is if we do see any downside or consolidation over the next coming weeks which does not look likely at least for this week to start the week I shall say $300 per shares going to be your support level I would highly doubt the stock breaks under 300 from this point on until we get the next correction because as you'll see in a moment there's a lot of bullish positioning in Tesla and there's a lot of shorts that are getting completely blown out of their short positions and we've only seen a a small baby little fraction of shorts actually cover on their short positions now if this is your first time to the channel in a while consider sticking around because we're keeping you guys updated by the second by the hour by the minute by the day and the week and of course the month what's going on with Tesla okay if you're just getting here there's multiple different things that are currently affecting Tesla okay there's the Trump tariff situation which Tesla's really a standout here because think about it like this if you buy a Tesla in America it was built in America if you buy a Tesla in China it was built in China if you buy a Tesla in Europe it was most likely built in Europe if not it was built in China in other words Tesla has already kind of solved the whole tariff problem in and of themselves they've kind of in a way been prepared for any kind of of us-based tariffs specifically in regards to China so Tesla is not hurt at all by any potential ter tari implications which makes Tesla kind of a standout because some companies have a lot of exposure to to potential tariff problems some some companies have very little Tesla's in that rare group that really has no connection to the tariffs whatsoever that could potentially come so if you're thinking about headwinds that's not a thing for Tesla Elon Musk is also very close with Trump their relationship has grown grown closer in recent weeks and months and there's not likely going to be any significant policies that hurt Tesla there could be policies that hurt Tesla's competition as Elon Musk has said before but not really anything that's going to hurt Tesla so those are very two very distinct positive things we have going for Tesla right now you also have earning season that pretty much wrapped up with your big Tech names yes there's more earnings this week a couple more notable names as well like Home Depot we'll look at that in just a moment but by and large earnings came in and they came in good as you can see here S&P 500 Q3 EPS grew 8% year-over-year versus the expected 3% so yes expectations were low heading into this earning season but earnings did come in good now the expectation for next quarter is 9% and the first quarter of 2023 is 12% now for q1 you're really comparing a 1% earnings growth in 20 in q1 of 2024 so it's not that crazy of expectations to go to 9% because q1 2024 was 1% and uh of course hopefully q1 2025 12% that's really not that crazy it gets more difficult when you're looking at like Q4 of 2025 where you're expecting 177% earnings growth versus Q4 of 2024 this quarter that we are in where you're already expecting 9% growth so if we can put up those numbers in 2025 longer term yeah markets are going to go much higher odds are estimates will come down and as you've seen via Q3 the the quarter that were just getting reported expectations plummeted two weeks before earnings came in markets did not so it doesn't always correlate with downside in markets when earnings estimates do fall a lot of the time it does but not all of the time we've seen that with this quarter earning season with that said we have Trump now going to be the 47th president of America which will likely bring in lower inflation despite what Wall Street currently thinks and this will allow the FED to cut rates more than Wall Street is currently expecting this is a Tailwind Catalyst for markets again something we're not really expecting that could come in and and fuel more upside for markets especially your risk on areas that's something to be continued something to watch out for we just got the FED which basically sounds like they're not concerned about inflation at all they're not concerned about tariff policies or any government policies until they actually happen that's another positive for markets and we're heading into seasonally the best two months of the year for markets especially during election years in which you do tend to post about a 6 to 7% gain from now until year end so these are all very positive things currently going for markets the only thing I can really see right now that's negative besides any political headlines that we may get that could spook Market markets is economic data and inflation if inflation data this upcoming week comes in bad that's a problem if it comes in good that's good if we get weakening economic data as far as the broader economy with let's say retail sales on Friday of this upcoming week that's not going to be good either I do believe at some point in early to mid 2025 you will get a pretty dramatic correction in markets 10 to 15% uh down downside that is when the markets kind of get fearful about the economy again right now we've all put in our bets for a soft Landing I think it's far too soon to do that I think the economy is going to go up and down there's going to be bumps along the way even if we do achieve a soft landing and currently markets are not priced for a hard Landing so any kind of chance of a hard Landing is going to be seen as a negative for markets now I don't think that is going to happen between now and year end I think the odds of that areir fairly low just given we got a bunch of economic data out the way and really after this week we're not going to get more economic data until December okay and at that point as long as it's not terrible the animal spirits in the markets will probably take over now in terms of again Tesla stock Tesla is in a very unique place because not many companies have so much going for them like Tesla if you even think about the longer term poti potential of Tesla if we do enter into a stronger economy if we enter into maybe lower rates keep in mind the FED is still cutting rates and tenure treasury yields potentially could fall from here as Jerome Powell alluded to uh you could start to look out further for Tesla's growth prospects and say maybe Tesla at all-time highs $400 so dollars per share is not a terrible investment considering how much growth Tesla has ahead of it Elon Musk just signaled 20 to 30% delay delivery growth for next year FSD I mean that continues to improve Robo taxis coming by the end of 20125 and Optimus is coming likely in larger numbers in 2026 and 2027 there's a long Tailwind of growth ahead for Tesla and depending on your time Horizon it could make sense to buy Tesla here if you have a three-year time Horizon a relatively shorttime Horizon you could even justify buying Tesla here at these levels now if you have a six-month time Horizon then maybe it's harder to fundamentally justify Tesla if you have a five or 10 year outlook which most investors do then you can easily make a case to own Tesla and make a case for pretty large upside from here and that's another reason why I do believe the shorts are likely to get squeezed now we'll look at positioning here in just a moment short interest options all of that but from a purely technical perspective as I talked about in the last video Tesla's RSI is at 76.
3 three which is technically overbought but normally when you get overbought on Tesla you normally see the RSI go to the mid or high 80s so from that perspective there's still a couple more really good days left in the tank for Tesla and it it seems like that's probably what is going to happen now keep in mind Tesla has went up 29. 01. 2012 so there will be some consolidation there will be some sideways trading maybe some slight downwards trading in the coming days but I do think by next Friday Tesla stock will be higher than where it started the week if not surely over the next couple of weeks now option activity for Friday was incredibly positive you had 725 different trades totaling $1.
16 billion with a positive order value of 90% that is a 90% positive order value you that's insane for option activity from hedge funds and institutions mind you this is not retail investors these are hedge funds institutions that tend to be more negative than retail on Tesla so if big money's positive retail is likely really positive and that is definitely great news for a potential continuation in Tesla on Friday as I previously reported you had 950,000 shares that were covered on uh return shares 2. 18 million Shar is 1. 23 million the dollar amount currently sold short in Tesla is about $25.
5 billion including the loss that shorts faced on Friday you have 2. 84% short interest U flow which doesn't sound like a lot but when you're almost 3% of the float sold short on a over trillion dollar company now Tesla's over a trillion dollars that is massive that is unlike anything you see on any other big tech stocks you currently have 79. 2 2 million shares that are sold short and days to cover is one day so what that means is all of these shorts in Tesla 79.
