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Short-Sale Set Up - Follow-Up to TSLA and YELP

It is not uncommon for stocks to rally 3-5% beyond their 50-dma or 200-dma and remain potential short-sale targets. That is precisely what we've seen over the past few days in Tesla (TSLA) and Yelp (YELP). TSLA pushed past its 200-dma and is now approaching resistance in the 360 price area. The move was fueled by news that the company has finally started to deliver on its Model 3 orders. With consistent short interest ranging in the 25-30 million share range, there are always enough shorts in the stock to fuel a short-covering rally when news hits TSLA is currently 4.1% past its 200-dma. Meanwhile, YELP has rallied 3.1% beyond its 50-dma. These both remain in play as short-sale targets, although we have yet to see the proper "triggers" necessary to initiate a short-sale. In their current positions, we would look for a break back below the 200-dma in TSLA and a break below the 50-dma in YELP as triggers for initiating short-sale positions. Keep in mind that these would likely only do so in conjunction with a general market move back to the downside, so will be dependent on the direction of the market "tide." With the NASDAQ's fourth-day follow-through of two Wednesdays ago still in force, a general market failure to the downside would be necessary to bring the short side of the market back into play in force. Thus we think short-sellers should keep these on their short-sale watch lists for now, ready to act as necessary based on the real-time evidence and the direction of the general market. 
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
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