I’m just going to say one thing, then I’ll let a “picture” speak for itself.
To all those that have argued with me that I “…just don’t get it!” when it comes to the capital markets and what they’ve become. All I’ll ask of you is this:
Tesla™ today became the largest, repeat, the largest automaker per market cap in the world. Its share priced rocketed (once again, pun intended) to $1,130.00 per share giving it a market cap of $210BILLION surpassing the former #1 known as Toyota™ at around $202billion.
Tesla is for all intents and purposes a boutique car manufacturer with a global market share of just 0.5%. And yes, that’s one half of one percent and is not a typo.
Please explain. It’s OK, I’ll listen. But I can’t promise you I won’t laugh. Just to be clear.
Toyota manufactures millions of cars per year, operates manufacturing plants around the globe and does so in what many still regard as a quality control operation second to none. All done under the auspices of making and delivering profitable returns. Tesla on the other hand makes its cars not under any auspices, but in actuality under a circus tent in California. Its quality control is all but non-existent as shown by reports and customer complaints. Oh yeah – and they basically don’t make money. i.e., they are a notorious cash-burn enterprise.
However, if you’d rather hear how all of this makes perfect “business” sense – all you need to do is plop down about $75K a year to hear it form one of the “cool kids” teaching business and marketing at your Ivy League
comedy club school of choice. Or watch any of them when they’re on any mainstream business/financial shows. It’s all the same f’n joke insight.
Now for the second…
I just want to put a “picture” to what I was talking about on today’s show, in regards to, what I was watching as to illustrate in more detail when I said: the “markets” moves as I’m watching currently are not doing anything that I wouldn’t expect it to be doing from a technical perspective. i.e., I made the reference there was probably going to be a gap fill and that would probably (again, it’s a probable not definitive) peter out at about the levels that it did.
So here’s that chart with a few notations that speak for themselves. Think of it as just being the latest addition to my ongoing commentary. To wit:
I find it a bit surreal with Tesla making a complete and utter mockery out of what was once known as “the bastion of capital markets,” concomitantly as the NASDAQ™ does the same making new, never before seen in human history highs as we await to hear tomorrow whether it’ll be 20, 25, 30 or more millions of people remaining unemployed, while we get even more calls for another round of lock-downs.
Something’s gonna give.
When? No one knows. Yet, if you look at the chart I posted above?
It may have just begun.
As always, we shall see.
© Mark St.Cyr