A Change in Sentiment Would Help. Here’s Why.
Sentiment is deeply important to how the market performs. Right now, sentiment remains more complacent than I would like.
SpaceX Lights a Fire Under Tech
Blowout SpaceX results lifted a swath of AI names, sending the Nasdaq up over 1%.
Double Down
I double downed on my $SPY short at $772.97 after the close and upon closer analysis of the Tesla ($TSLA) and Meta ($META) releases.
Position: Short TSLA (S), SPY (M)
The Bulls Are Leaving the Building. That Could Improve the Odds of a Rally.
It’s counterintuitive, but if more people turn bearish, then there is more fuel for a rally as those investors jump back into the market.
My Comment of the Day (Part Deux)
Dougie Kass
I have a quick $15 profit in my short of Tesla and I am taking off one third of the position.
Position: Short TSLA (S)
Oscillator Moves Back to Overbought
The S&P Short Range Oscillator moved back into overbought territory at the close.
Position: Short SPY (S)
More on the Favorable Cannabis Decision
Position: None
Wednesday After-Market Trading
After the market closed I added to my $SPY short after more clearly analyzing over the $META and $TSLA releases.
As I mentioned (first time long time!) I took a TSLA short-term rental in the after-hours about $394. (I should have done the same with META!)
Position: Short SPY (S), TSLA (S)
Wednesday’s Closing Stock Market Stats
Closing Volume
– NYSE volume 11% below its one-month average;
– NASDAQ volume 1% above its one-month average;
– VIX index: down 3.64% to 16.68
Breadth
S&P 500 Sectors
% Movers
Heat Maps
Position: None
Tesla Shares Higher After Surprise Positive Cash Flow But Then Turn Lower
Tesla ($TSLA) shares are up a little over 1% after beating on the bottom line and reporting $1.5 billion of positive free cash flow versus expectations for a loss of $5 billion, assuaging some concerns surrounding the firm’s increased investments into robotics and AI. In that regard, capex was well under expectations at $4.73 billion (vs $2.25 billion the year-ago period). $7.95 billion was expected according to Bloomberg.
Gross margin also beat at 19.6%, while adjusted EPS of 48 cents topped estimates. Weakness was seen though in operating income which fell 56% from the year-ago quarter.
Revenue in Tesla’s core automotive business declined 3% from a year earlier, and while positive, free cash flow was down 62% year-over-year.
Active full self-driving (FSD) subscriptions rose to 1.74 million, up from 1.48 million in Q2.
The full slide deck presentation is here.
Bloomberg also has an ongoing live blog for Tesla.
Update: Tesla shares turned lower after Travis Axelrod, Tesla’s head of investor relations opened up the conference call with “We will not be addressing any questions today on a potential merger with SpaceX ($SPCX).”
