I first offered up the insane idea of shorting Tesla back on September 15th, then I followed up with the same notion on September 22. My reasons were simple: (a) their persistent delays in rolling out the Model X were pissing off their most loyal devotees, like yours truly; (b) failed bullish breakout, shown in yellow below; (c) affirmation on the failure with a trendline break and retest, highlighted in magenta. It all added up to a great reason to short the stock and go long the put options, both of which have paid off nicely. Elon, you really should focus on getting the X out the door before you start monkeying around with new models that aren’t that important to people!
I mentioned the social media ETF (symbol SOCL) being a good short based on its Fibonacci retracement. Yep. See, this chart stuff actually does work from time to time.
One of those “one that got away” stories for me is Herbalife, which I wanted to short when the insane Ackman/Icahn battle was raging away. I felt the urge to be short HLF only because I consider Carl Icahn to be repulsive, with the moral rectitude of Bill Clinton and the boyish good looks of Jack Ma. It was also icing on the cake that I considered the company itself exploitative and scummy. All the same, I couldn’t find a single share to short, and I’ve watched merely as an interested bystander as it has lost over half its value over the past nine months. Nice goin’, Master of the Universe.