Tuesday, May 27, 2014

The Market is Still Rallying

The market is going bananas over the past few sessions.  Cramer had some good insight on why the market rebounded so sharply after the down sessions last week.  The bears were placing a lot of puts and shorting the market and when the market showed a little strength they tried to buy back all their shorts.  This is what happened in Trading Places with Eddie Murphy and Dan Akroyd.  The market kept going up as people tried to recover their shorts.

Now in terms of the one stock I’m really watching there is a strong contingent of bulls behind TSLA and whenever the market tries to short TSLA there is a huge rally when the selling pressure goes down.  In light of that there is a new development with the S&P listing Tesla’s debt as junk based off their cash flow as well as their recent and planned purchases. Even in light of this news the stock is still stable on after-hours trading.  It will be interesting to see what happens tomorrow.  


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