Originally Posted by
Raffe
Another crazy day today. Bought some more COIN below $260 yesterday just before their earnings release, which resulted in some wild swings but very nice upwards slope all morning and hit $283 before opening - and then got slammed hard to $260s right after the bell. Tried a couple of breakouts but failed every time. Just sold at $259 because I am getting worried that the US will take steps against crypto exchanges following the Colonial pipeline debacle. Maybe I am FUD here, but the position was very large and didn't want to have that risk over the weekend.
Lucky escape selling COIN on Friday, today weak from the get go on Elongate and then recovered into the close - only to run into a convertible offering by the company! Nice they let all the insiders sell first before the company itself sells. What a shambolic treatment of retail IPO buyers. I still think it's a nice income play, but will look to buy below $200 now.
Elon today in Germany inspecting the new gigafactory, with a single interview pushing the opening date further back (which would require an ad-hoc for any other company on this planet), Closer to home, another dark cloud forming over Tesla with the LA Times reporting about a DMV investigation of FSD fraud. I am seeing massive class actions coming up, with tens of thousand of customers asking for their $10,000 back for a product which never existed. This can turn very ugly very fast.
Tesla is “under review” by the California Department of Motor Vehicles to determine whether the company misleads customers by advertising its “full self-driving capability” option, the agency told The Times. A Tesla equipped with the $10,000 FSD package can change lanes, take highway exit ramps, and stop at traffic lights and stop signs on its own, the company says. However, it is not capable of fully driving itself, according to widely accepted engineering standards. Asked for detail, DMV spokesperson Anita Gore said via email, “The DMV cannot comment on the pending review.” She did list the penalties that might be applied if a company is found to have violated DMV regulations that prohibit misleading advertising concerning automated vehicles.
LA Times
In other news, still short sizeable position in S&P500 futures (from 4,231 on Friday), came close at one point to day but recovery into close. Conviction is rather high, going to stick to this one unless we see violent upside move. And then the AMC position looks like it's ready to take off (already 31% in profit but this has much more upside left in it).
New position today: long RAVN @ $42.25.