Fund Manager: Tesla is one of Wall Street’s most dangerous stocks

Mark Tepper of Strategic Health Partners says one of the craziest stock market stories of the week is probably the most dangerous. Tesla, he says, is a no-go zone – whether it’s bullish or short.

“It’s one of the most dangerous stocks in the world. I don’t want to have it; Very speculative. Big stocks shouldn’t trade like cheap ones – up 20 per cent today and 20 per cent tomorrow. “This week’s rally was partly due to a short run, with a large number of short-term investors forced to close their positions.

Fund Manager: Tesla is one of Wall Street's most dangerous stocks

Matt Maley, chief market strategist at Miller Tabak, agrees that after such a big rally, the market may need a little respite. “Earlier this week, when the stock was above $900, I sent a notice that the stock was seriously overbought and should be significantly resold. When we see these individual investors coming in and buying stocks like this, this is usually a top signal. “

Tesla’s Relative Strength Index (RSI) hit 94 points earlier this week. A reading above 70 usually means overbought.

“It’s now grossly overrated. In my opinion, the most optimistic expectations are internal, so there is an execution risk,” Mr Tepper added.

He noted, however, that this unpredictability made it impossible to speculate on its next move. “Honestly, I don’t know where this stock will trade tomorrow because it has its own ideas,” Tepper said. “But” Tesla’s stock is effective during the planning and storytelling phase, but not during the execution phase. Now, we’re in the execution phase, so it’s a taboo for us. “