It’s a long weekend here in Canada, and the weather is very hot, so since you don’t want to waste your time in front of a computer screen, I’ll be brief.
The panic selling in gold appears to be over (for now), so on Friday I began to accumulate a small position in NUGT – Direxion Daily Gold Miners Bull 3x Shares NYSE + BATS. I may be early, or may be wrong, but that’s the play.
Now, the more fun one: TSLA – Tesla Inc. Our pal Elon Musk promised to get to 5,000 cars produced per week by the end of June. My guess is that he will announce that yes, in fact, they did produce 5,000 cars in the last week of June.
That will be your cue to short the stock, because after that bit of positive news, it will be all over from there.
He has built a tent and is assembling cars by hand in the tent to get it done. Yup, a tent. That’s not exactly the robotic future he promised. Not even close. The cost to build a tent and have workers hand-assembling the cars, like it’s 1920, is crazy, but it will allow him to meet his target. He is also only building one model (the Model 3) and only one color (red) to speed up production.
So, he will meet with target, but will have also proven that he can’t build cars (except by hand, in a tent).
I will be taking the opportunity to short the stock (probably by buying out of the money puts, expiring in October), and I’ll ride it down from there.
That’s the plan, thanks for reading, enjoy the heat.
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