Market On Open, Monday 9 December
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Chutzpah 101
by Alex King, CEO, Cestrian Capital Research, Inc
Love the guy, hate the guy, never heard of the guy, doesn’t matter, you have to hand it to Mr Musk for his latest marketing wheeze (for a wheeze is what it is. “The most entertaining outcome” and all that). As you know, the loosely-coupled NeverMuskers group together under the heading of $TSLAQ; Q indicating bankruptcy in exchange-speak. (There is plenty of support for $PFEQ too … the hate isn’t limited to Musk). Well, I don’t know anything about the automotive sector so I have no view on whether the new Tesla Model Q is an Edison or a savior, but I do know that $TSLA is likely to benefit from the Model Q narrative. Tesla is up in premarket in a generally weak morning; I would be surprised if there isn’t more upside ahead for the name. (I am long $TSLL personally, for disclosure).
As we enter the final weeks of the trading year, let’s take a look at where market stands right now. I believe that overall the setup for equities remains biased to the bull side but I am on watch for cracks in the edifice. We have an incoming Administration that will be very focused on market success - you can see that in the array of grownups getting nominated for grownup jobs at Treasury, the SEC, and so on. But we have a world that doesn’t take too much notice of which flavor of government is in power in which country, on the basis that the market in aggregate has more money than any government’s ability to push it around. Geopolitics is in flux; the fall of Syria makes that more not less true. So there are plenty of reasons to be on alert right now. As always, staying rational, balanced, unemotional, with low heart rate and calm breathing, is the way to invest and trade in this market. Plenty of folks are getting all hyped up as Bitcoin soars and plenty of folks are getting bent out of shape that the Crash To End All Crashes has yet to happen. The trick is to ignore them all and remain focused and machine-like.
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Short- And Medium-Term Market Analysis
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