Public trading strategy
Musk fans are selling Tesla to buy SpaceX — ride the short-term Tesla dip
Thesis
Elon Musk's retail fanbase has been eagerly waiting to buy SpaceX, and now that it's finally public, their money is flowing into the new stock rather than his other ventures. This distraction is causing Tesla stock to slide as fans sell their Tesla shares to fund SpaceX purchases. With the SpaceX IPO dominating the headlines and pulling investor attention away from the EV giant, this short-term drop in Tesla could continue over the next few days.
Strategy approach
Build a short-term momentum strategy shorting TSLA. Enter a short position on the 1-hour timeframe when the price crosses below the 50-day Simple Moving Average (SMA) and RSI(14) is below 40. Set a 2% take profit and a 1.5% stop loss.
Markets and timeframes
TSLAH1