Guess who’s getting added to the S&P500 in time for Christmas. It’s your favorite EV. Check the after-hours action in Tesla ($TSLA) (November 16, 2020)TSLA
The S&P just announced that Tesla ( NASDAQ: TSLA ) is going to be added to the S&P 500 ( INDEXSP: .INX ), effectively, December 21st, so it will be a nice Christmas present for the Tesla ( NASDAQ: TSLA ) bulls.
This is kind of an interesting situation; it is something that everybody has kind of been waiting for, kind of assuming that it would happen sooner or later. That’s, of course, one of the reasons why I always say it doesn’t pay to short Tesla ( NASDAQ: TSLA ). Some really smart guys have done that before and it didn’t really work out well for them.
Tesla ( NASDAQ: TSLA ), though, was kind of rolling over here. It was rolling over but it’s not doing that now. So my sense is that tomorrow when this thing opens up, I don’t know where it’s going to open up but when it does open up I got the sense that you are going to have a lot of Tesla ( NASDAQ: TSLA ) bulls that are going to be running and pushing this thing at least to 500.00, perhaps even higher.
That’s the way I am looking at this right now. This is really big news; a lot of people kind of got bored with Tesla ( NASDAQ: TSLA ) because it has been trading around for a while. By the way, I would be one of those guys. I bought this a couple of times then wound up selling it because it didn’t give me this kind of move that I was looking for.
And then it sold off here and then it comes back up here, it runs up, and it didn’t give me this kind of move. I’m one of those guys that just said to heck with it, I don’t like Elon Musk anyway. I don’t like this pattern so I’m out of here. And then, sure enough, boom, the S&P ( INDEXSP: .INX ) says, we like Musk.
I think you have got to be long this stock tomorrow. It’s hard to say, chase it, it’s only up 13 percent. I’ve seen this kind of stuff before; back when most of you probably weren’t even trading, I remember when Google was added to the S&P 500 ( INDEXSP: .INX ). That got real sporty real fast; this could go a lot higher. You have to watch for the price.
Don’t take my word for it, I don’t know, I don’t. So don’t be making a trade going, well, Fitzpatrick said this or that; make your own trade. I am just saying, I’ve seen this type of thing before and it seems to me like the path of least resistance on this thing is going to be higher tomorrow morning.