Go ahead. Mark your calendars. Bookmark this page. I’m prepared to be judged by the group’s one-month-older selves. Because this week was unhinged and, in retrospect, will be seen as idiotic. Let us take two specific stocks.
The first is Buzzfeed. This was one of the many SPAC Wrecks of last year, losing about 98% of its value. It was a garbage stock. A wreck. A low-volume pile of trash. And deservedly so.
And yet, in the space of two days, this piece of dog crap went up about 300%, and its volume went from the realm of 10,000 shares a day to HUNDREDS OF MILLIONS. It’s batshit insane. And why? Well, because they sent out a press release saying that they were going to let ChatGPT create some content for them.
If, a month from now, this isn’t seen as a hare-brained gimmick, and the stock hasn’t lost most of these gains, well just put me in a blue taffeta dress and call me “Peaches”, because this is the stupidest thing I’ve seen since the late 1990s when all you had to do was say your company was “an Internet portal” to make the stock explode higher. These days, associating yourself with anything to do with AI is, for the moment, the ticket to riches.
Now let’s turn our attention to a more substantive company, Tesla. This sucker added 80% (hundreds of billions of dollars) of value in 14 trading DAYS. Umm, this isn’t sustainable, folks. Not only is it not sustainable, but this thing is getting ready for a hard, hard stop at resistance.
I’ve long held that it might recover to as high as just above $200 (although I never anticipated with such speed) but, Jesus H. Christ on a pita biscuit, Slopers, this is just retarded.
I’ll go even further out on a limb and say that, unlikely – – impossible, even – – as it may seem right now – – if TSLA does get above $200, it could turn out to be one of the greatest short sales of the entire year. I’m not joining the crowd of folks (like Atilla) who says it’s going to the $20s, but I am definitely saying that the swoon from close to $200 to wherever-it-stops could be epic.
Anyway, let’s review this in a month. I wouldn’t put my ideas out there if I was afraid of that dress of yours.
