Stimulus Has Metamorphosed Into a Mushroom Cloud

by Rick Ackerman

Lord knows, I’ve tried to be extravagant with my rally targets, since I don’t want the permabear in me to queer profit opportunities just because the stock market has been rallying against every molecule of instinct I possess. But I could scarcely have imagined that when I put out a technically-derived rally target at 1803.69 Sunday night that lay 255 points above the stock’s previous close, that it would achieve this height the next day. As the chart shows, the forecast didn’t do too badly, since the stock topped Monday just four-tenths of a percent below the target before relapsing an exhilarating 300 points. In my TSLA ‘tout’ (see below), I’d noted that an 1803 top might actually disappoint some investors who think in nice, round numbers. $1800 is so close to $2000, how can the stock possibly miss, right? But it may actually have done so, since the large number of bulls who got badly trapped whenTSLA plummeted from its fleeting highs now constitute huge, and perhaps increasingly desperate, supply. If TSLA is to exceed Monday’s peak, it will entail quite a struggle.

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