LET GO INTO THE MIND OF SHORT SELLERS!
Short-sellers borrow a security and sell the security into the open market at a high price and expect to buy it back eventually at a lower price and will profit the difference as a capital gain. Short-sellers watch the security and wait for an opportunity to initiate their trade. Short sellers place their bets when the security price is most vulnerable. Short sellers know when to stay out of the market. They stay out of the security when the security's price is going higher. Short selling happens quickly and hard because they have a loan that must be repaid; therefore, they must cover their short position quickly. They short sell when the long-term investors are fearful, restless, when the long-term investors are weak and when unexpected news is announced for example like a bad earning report. Short sellers also enter the market when long traders liquidate their position to take profits.
On Dec 9, 2020, I published an article claiming that TSLA Telsa, Inc makes a high that week to $652.32 and stated I think the stock is due for a short-term correction soon because the price is moving too fast. Indeed, TSLA Telsa, Inc. had a quick correction. The short-term correction is visible on the hourly chart of TSLA Telsa, Inc above. The stock opened on Dec 9, 2020, with an all-time high of $653.28. The stock price quickly dropped to a low of around $606.48 as of the market close on Dec 9, 2020. The next day on Dec 10, 2020, the stock hits the low price of $566.34. 11.13% profit for short sellers in one day is not bad. This is a perfect example of short-sellers shorting a stock and long traders profit-taking causing the stock price to drop significantly.
On the same day, the stock reversed direction and continued higher and closed the day at $627.07 (as of market close on December 10, 2020). The combined actions of short-sellers covering and long traders looking for a bargain quickly reversed the short-term correction and the price of TSLA Telsa, Inc continued with the current uptrend and closed today at $694.78 (as of market close on December 30, 2020).
Thank you for reading! Remember to click "Like" and "Follow!"
Happy New Year!
Greenfield
Disclosure: Chart interpreted by Greenfield. Just a market opinion by Greenfield Analysis LLC for only educational purposes. This is not a recommendation. Greenfield Analysis LLC has no investment in any of the securities mentioned in the article, and no plan to initiate a trade in any of the securities mentioned. Greenfield does not receive any compensation for this writing. Investment involves substantial risk. You should consider carefully before making an investment. Investment at your own risk.
Short-sellers borrow a security and sell the security into the open market at a high price and expect to buy it back eventually at a lower price and will profit the difference as a capital gain. Short-sellers watch the security and wait for an opportunity to initiate their trade. Short sellers place their bets when the security price is most vulnerable. Short sellers know when to stay out of the market. They stay out of the security when the security's price is going higher. Short selling happens quickly and hard because they have a loan that must be repaid; therefore, they must cover their short position quickly. They short sell when the long-term investors are fearful, restless, when the long-term investors are weak and when unexpected news is announced for example like a bad earning report. Short sellers also enter the market when long traders liquidate their position to take profits.
On Dec 9, 2020, I published an article claiming that TSLA Telsa, Inc makes a high that week to $652.32 and stated I think the stock is due for a short-term correction soon because the price is moving too fast. Indeed, TSLA Telsa, Inc. had a quick correction. The short-term correction is visible on the hourly chart of TSLA Telsa, Inc above. The stock opened on Dec 9, 2020, with an all-time high of $653.28. The stock price quickly dropped to a low of around $606.48 as of the market close on Dec 9, 2020. The next day on Dec 10, 2020, the stock hits the low price of $566.34. 11.13% profit for short sellers in one day is not bad. This is a perfect example of short-sellers shorting a stock and long traders profit-taking causing the stock price to drop significantly.
On the same day, the stock reversed direction and continued higher and closed the day at $627.07 (as of market close on December 10, 2020). The combined actions of short-sellers covering and long traders looking for a bargain quickly reversed the short-term correction and the price of TSLA Telsa, Inc continued with the current uptrend and closed today at $694.78 (as of market close on December 30, 2020).
Thank you for reading! Remember to click "Like" and "Follow!"
Happy New Year!
Greenfield
Disclosure: Chart interpreted by Greenfield. Just a market opinion by Greenfield Analysis LLC for only educational purposes. This is not a recommendation. Greenfield Analysis LLC has no investment in any of the securities mentioned in the article, and no plan to initiate a trade in any of the securities mentioned. Greenfield does not receive any compensation for this writing. Investment involves substantial risk. You should consider carefully before making an investment. Investment at your own risk.
Note
There is a typo in my chart. Please accept my apology. The chart should read as:
60% Bullish
40% Bearish
Thank you for reading!
Greenfield
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.