Hi does Les, you hope you're well and welcome to
a brand new update on Tesla.
Now, if you've been watching my previous videos on Tesla,
you will remember two things.
Firstly, about a month ago,
I warned strongly against Tesla why?
I mentioned to you the dangerous surge and I showed
you this chart.
I showed you this chart on the weekly time frame
and I said this is a strong warning,
essentially a massive bubble and extreme acceleration,
the price of Tesla and we should avoid it like
the plague.
And of course, I showed you my targets in the
second video.
I published my second video about how low Tesla could
go.
I showed you these likely targets about the 500 to
400 region.
And guys, it gives me no pleasure to say what
am I talking about?
It gives me great pleasure to say that indeed Tesla
has done exactly that.
It has dropped down to our first target,
in fact, actually gone below that level
and is now approaching potentially our second target as well.
So in other words, guys,
in just the last couple of weeks,
Tesla has spoken and here's the market response to the
Tesla Moon boys.
Oh, I shouldn't have had that burrito,
bro. Exactly. Tesla has just dropped a massive burrito or
a Mondo Duke on top of the Tesla Moon boys.
And when I say Tesla Moon boys,
I'm specifically referring to the guys who bought
here at the peak right there on the 4th of
February.
In case you're wondering how I know that a lot
of people bought right on that date because there are
actual reports,
there are independent reports that say that people bought in
this region here,
essentially when the price surged in this region and in
this region.
And there was a lot of people who bought at
those levels.
In fact, let me show you,
this is on Google Trends.
It shows when Tesla search actually peaked there.
And as you can see,
guys, 4th of February, there it is 4th of February
was the search on Google Trends.
And essentially, guys, I can tell you when I posted
my videos,
guys, let me tell you when I posted my videos
that I was expecting Tesla to drop,
I got a lot of trolls just saying the most
horrendous things to me,
you know, saying I didn't know what I was talking
about unless he has no clue what he's talking about.
I'll show you those comments in a few minutes,
but let me just play for you a very short
clip of what I said in my last video.
Here it is. Firstly, also notice what I have here
on my chart.
This is my bubble indicator.
This is the indicator I developed to show me objectively
that we're in a bubble or indeed the price has
reached a very extreme overbought and the point of extreme
acceleration, which is often what we see in a bubble.
So what I think is likely to happen next guys
is this.
So I think statistically and based on the laws of
probability,
we could see Tesla price move back to
the mean average. We could see the minimum testing the
upper band and perhaps even dropping lower to testing the
middle band,
the middle line, the mean average level.
So anyway, guys, that's what I got.
And that means this, by the way.
That means that the mean average,
once we tested, it's going to be more likely to
be below 500 in the 400 regions,
guys. All right, guys, as you heard there,
the warnings were there. So any Tesla Moon Boy or
Tesla Bull was going to say,
well, we didn't know that this whole story,
the panic in the market is going to happen,
guys. The warnings were there,
and here's why they don't understand.
And guys, it's actually something I've learned in my career.
I want to share this with you.
Anytime you see price becoming extremely expensive and anytime you
see extreme acceleration in the price like you see here
in the red and the purple acceleration signals here in
Tesla, this is a strong warning.
You know what, guys, be very careful because this market
is about to potentially implode in itself.
All right, guys? In other words,
the probabilities of a drop are accelerating or increasing.
So anyone who says the warnings were not there is
just fooling themselves.
And guys, let me tell you,
those Tesla moon boys are completely deluded.
And guys, let me just show you some of the
comments that I got from my last video so we
can have a good laugh about it.
Again, these are comments from trolls or just people who
have no idea what they're talking about.
I've actually blacked out their names because I don't want
to embarrass them.
This guy said to me,
well, well, well, 850 as of now,
Tesla dip is done up,
up, up.
OK, that's interesting. Let's take a look at another one.
I would recommend no one listen to this.
By the way, whoever wrote that comment,
let me just say this.
You're right, no one should listen to you.
Here's one from another person who wrote this.
This is what happens when you analyze a business and
a stock by quantitative measures only.
This is exactly why so many traditional analysts have been
wrong for years about Tesla with destructive technology.
Quality of analysis, Well, there you go.
This is what happens when you overthink things,
when you try to complicate things.
It's not that hard. Here's another one for you from
down here.
This guy says you're using linear regression analysis and applying
it to a non linear growth stock,
la di da. Well guys,
he's wrong. As you can see here from my last
video,
regression analysis actually by far is the most reliable form
of analysis.
And guys, any market, doesn't matter if it's growth,
stock, linear or nonlinear, all of them revert back to
the mean.
I think there's one more here I want to show
you.
This guy says you can take your drawings to the
kindergarten.
You've been talking with confidence as some kind of laws
of trading are absolute.
Your conclusions are only speculation using math tools to support
your own theories.
Nothing here is objective. Price snaps back as a magnet
lol. Well, I want to speak to the guy who
wrote that comments Now,
how does it feel for you to be in the
kindergarten today?
So guys, that has been so far a phenomenal,
a phenomenal move in in Tesla.
And I think it looks probable.
Now we could be testing potentially.
I mean, we do have a potential target down here,
the 50 simple moving average here on the weekly charts.
But even if not bad,
we have the 200 daily moving average,
which I think is acting like a magnet now that
may be acting like a magnet for Tesla to test
at some point,
maybe in the next few weeks.
That 200 daily moving average,
the green line is about
368. Potentially we might test that level.
But in any case, guys,
Tesla has dropped to the levels we were expecting it
to.
And guys, that means this.
As long as we follow the laws of probability,
we can also avoid the massive Mondo Dukes
that the market often surprises people with and drops it
on people.
All right, guys, thanks very much indeed.
I hope this video helps.
If it has, please give it a thumbs up and
look forward to seeing you guys in the next video
update.
Mondo Duke in
321.