Tesla Motors Inc (NASDAQ:TSLA) continues to power higher, ignoring
valuation issues. The hype continues to be the story here and it
has carried it up over 300% in 2013. Today however, the stock is
speaking a new tune on a technical basis. First, the stock has a
three bar surge on the daily. We find that major moves end on three
bar surges. Next, the stock has an intra day topping tail on huge
volume. This signals distribution and a possible top. Last, the
market cap of this company is now almost 50% of Ford Motor
Company (NYSE:F) and General Motors Company (NYSE:GM). One last
thing that should be mentioned, everyone, including the milkman is
now talking about how great Tesla is. The great market and stock
tops are always put in when the average investors get the most
bullish.
Gareth Soloway
InTheMoneyStocks
