Digital Social Hour
Tesla’s Overbought Reversal: What Traders Must Know | Ricky Gutierrez DSH #1109
Thu, 16 Jan 2025
🚨 Tesla’s Overbought Reversal EXPLAINED! 🚨 Join Sean Kelly and trading expert Ricky as they unpack Tesla’s massive stock swings and what this means for traders! From overbought reversals to the psychology of hype-driven markets, this episode is packed with valuable insights for anyone navigating today’s volatile financial landscape. 📈💡 Ricky dives deep into Tesla’s recent skyrocketing trends, the correction signs traders should watch for, and why understanding both short-term and long-term strategies is crucial. Plus, get a behind-the-scenes look at live trading sessions, expert tips on minimizing risk, and how to approach market pullbacks with confidence. Whether you’re a seasoned investor or just getting started, this conversation is a goldmine of actionable advice. 💰✨ Don’t miss out—watch now and subscribe for more insider secrets. 📺 Hit that subscribe button and stay tuned for more eye-opening stories with Sean Kelly on the Digital Social Hour! 🚀 Join the conversation in the comments and let us know your thoughts on Tesla and today’s market trends! 👇 #bitcoin #crypto #teslastockanalysis #teslastockprediction #swingtrading #bitcoin #teslastockanalysis #crypto #swingtrading #beststockstobuynow CHAPTERS: 00:00 - Intro 00:31 - Market Trends Analysis 04:59 - Today's Sponsor - Specialized Recruiting Group 07:51 - Trump's Stock Tax Impact 08:11 - Crypto Investment Opportunities 09:46 - Solana vs Bitcoin Comparison 12:28 - Reasons for No Stock Picks 16:43 - House Flipping Insights 20:33 - Spirit Airlines Bankruptcy Update 23:52 - Short Selling DJT Explained 28:32 - Nancy Pelosi's Stock Trading Strategies 32:04 - Musk and Ramaswamy DOJ Discussion 32:27 - Understanding the Deficit 34:10 - Current Inflation Trends 36:43 - Where to Find Ricky APPLY TO BE ON THE PODCAST: https://www.digitalsocialhour.com/application BUSINESS INQUIRIES/SPONSORS: [email protected] GUEST: Ricky Gutierrez https://www.instagram.com/rickygutierrezz SPONSORS: SPECIALIZED RECRUITING GROUP: https://www.srgpros.com/ LISTEN ON: Apple Podcasts: https://podcasts.apple.com/us/podcast/digital-social-hour/id1676846015 Spotify: https://open.spotify.com/show/5Jn7LXarRlI8Hc0GtTn759 Sean Kelly Instagram: https://www.instagram.com/seanmikekelly/
Chapter 1: What are the recent market trends for Tesla?
Or whatever it is. Business class. My bad. I got it once. You got lectured? Yeah, no. Yeah, thanks for coming on, Ricky. What have you been up to, man? A lot happened in the past two weeks.
Yeah, so when it comes down to markets, we've been trying to do our part in keeping up with our markets overbought. Some people think that markets are going even higher, and that's really a conversation that I'm excited to kind of talk a little bit more about today.
And you've always been a long-term trader, right?
Yeah, I have a long-term account, but also when it comes down to trading, I don't really focus on lower cap stocks. I focus more on blue chip stocks, but I like to trade overbought and oversold reversals. So not as exciting, a little bit more on the boring side, but I don't even know what reversals are, to be honest. No, they're just set up. So like right now, Tesla gapped up, right?
Gapped up 54% in the past like 16 trading days. Obviously the only catalyst when it came down to that was that he's part of the Trump administration, which is super exciting. Don't get me wrong. I mean, there's never been one time in history that I can recall, at least in my adult life, that anything like that has ever happened.
So, you know, I think this is why a lot of people got the euphoria of like, oh man, Tesla's going to 400, 500. And although that's really exciting, I mean, literally a week beforehand, Tesla reported earnings and there was a robo tax event. Tesla went from 275 all the way back down to 230. There was no excitement for the guidance of 2025.
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Chapter 2: How does the Trump administration affect stock prices?
Now, all of a sudden, this sentiment changes just because he's part of the Trump administration. So we let it shoot up. And the overbought reversal in this sense was, we don't know how high it's going to go. We don't know if it's going to actually run to 400%. But we wait for signs and indication of it peaking.
And once it begins to curl on over, just as quick as it rallies, it tends to correct itself because the hype ends up fading, just like what we've seen with crypto, right? Or the whole meme stock movement. We don't know when the peak is, but when we know one thing, when the peak does present itself, there's always a correction. And that's what we're doing right now.
As Tesla begins to correct itself, I think it hit highs of like 360. It's already corrected itself, I think, 13% to 14%. And in my opinion, I think that it's going even lower. I think that it can go down to 260, 215 on the short term. I think Tesla, I love Elon. I'm one of the biggest Elon fanboys, but I think it's really important for an investor to not just have a short term,
perspective of the market, but also long-term and macro understanding of Tesla. I really hope to see Tesla be worth 5 to 10x of what it's worth now. And supposedly Elon thinks that he can get it there with that Optimus robot, but maybe that's a conversation for another time.
Oh, is he bundling that?
robot into Tesla, the one that was serving alcohol at that party? Yeah, I think that was part of his package that he renegotiated with Tesla shareholders, where he wanted to get more equity and ownership of Tesla, if not that he was going to take his AI developments and the robotics possibly elsewhere. So they did renegotiate it.
And as Tesla began to skyrocket, a lot of advisors are now suggesting that maybe it's not the worst thing thing for Tesla to do to maybe liquidate some shares to have some cash on the balance sheet, just to be able to tolerate one of those pullbacks that could potentially happen. Because at the end of the day, we can't predict the future, right?
We don't know 100% if Tesla is going to correct itself. But again, there's no question that if one or two weeks prior to this thing skyrocketing, if Tesla was retracing and the only reason that there was a positive reaction was because of his
connection to the trump administration we know that just like any catalyst eventually that hype does end up fading and that's where the corrections tend to happen that makes sense when did you identify the correction on this one well it was just this in the past three days that tesla actually began to correct itself so all i do is i wait you can't predict the top i really don't know how high tesla's going to go all i knew was that it was extremely overbought within the short term so once it begins to actually indicate signs of a reversal
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Chapter 3: What are overbought reversals and how do they work?
And you do it with a dollar amount in which you can tolerate, right? So when it does begin to recover, you can lock in profits early, yet you still made actually more money than anyone buying at $80,000, $90,000. At least for me, that makes more sense.
No, I agree. The risk to reward right now, I would say, is not worth it, especially on Bitcoin. Yeah. It's already 93. So like... You might 2x at best, but the odds of you losing is pretty high. Pretty significant. So yeah, the time to buy was maybe a year or two ago. Yeah. So if you're buying now with the hopes of making like a 2 to 5x off Bitcoin, it's pretty unlikely. I agree. Definitely.
Solana, though, could hit that.
So explain to me what... For someone that understands nothing about crypto in that sense, what's the difference from Solana and the use of it versus Bitcoin?
It's just a different chain. So applications are run off these chains. So there's a lot of different ecosystems within Solana, within Ethereum and Bitcoin.
To my understanding, Doge has a now $15 trillion market cap. It's almost not considered, I don't want to call it a meme coin. To me it is, because I feel like the whole concept behind it, the only reason it's been legitimized is because of Elon. But now even this whole DOGE administration. But when it comes down to Solana, do you know what that market cap is?
It's the third highest coin, so it's even higher than Doge. Shit.
I believe.
So then technically, has it gone through three bear markets?
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Chapter 4: What are the risks of trading in volatile markets?
Chapter 5: How do short sellers impact the market?
yeah to put these policies in effect and the short-term inflation should be picking up because the cpi data report that's released every single month tracks inflation is going up or down what do you think is going to happen when the cost of gets sold based off of these import taxes right because that's what they are these taxes that are being charged to importers
They always, any form of tariff or increase in these taxes will get passed down to the consumer, right? And I think that's just really important to note where I still believe the route that they are choosing to take in implementing these tariffs, I'm willing to try it out because I'm sure you've seen all the different articles in the news where they say, oh, you know, for the average family,
it's going to cost an additional $4,000 to $6,000 a year in groceries for the cost of goods. And that is true. And that might really hurt the lower income bracket for America. But I think the thing to take into consideration is that the whole point of implementing this is to get rid of the federal income tax, which is if you make $55,000 a year plus, I mean,
You're already not even seeing, what is it, $18,000 to $20,000 a year? So a $4,000 to $6,000 increase doesn't seem like much of a hit when you're experiencing an additional $18,000 to $20,000 that you actually have to work with.
I would rather have full control of my money and spend it on more expensive goods if that's what I choose to do rather than just to give it to the government that continues to mismanage our funds.
Absolutely. What's Trump's take on tax on stocks? Because I know with crypto, U.S.-based companies, he wants to remove those gains if you buy U.S.-based crypto. I did not know that. He announced that, I think, yesterday. Okay. So Ripple and there's a few others that started in the U.S.
So that's why we saw another upswing, right?
Yeah. I think Ripple's up a lot. Wow. Bitcoin hit 93, dude. Yeah, 93.4. Crazy. Doge is at like 60 cents.
I wanted to ask you, what is your take on that? Obviously, you're incredibly bullish in crypto. I'm not someone that focuses too much on crypto at all. All I try to pay attention to is the big picture. And to me, in the big picture, people that are buying now, I think they're going to get burned. My question is not, can they make money? I think anyone can make.
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Chapter 6: What should traders know about market corrections?
Chapter 7: How does house flipping work in today's market?
Normally, like on the one hour, on the four hour timeframe, you begin to see that there's lack of progress on the upside. And then again, you wait for that price action to follow on the downside. Once you get that correction of the price action and the selling pressure follow, like today itself, I think it sold five or 6%. That's pretty significant. We're talking about a trillion dollar company.
It losing 6%, it's not just an average day. And just because, I mean, when Tesla begins to fall, Now, the rest of big tech is also falling, not just because of Tesla, but everything skyrocketed due to, again, now there being a Republican president-elect, a Republican House, and a Republican House of Representatives.
Supposedly, this should be great for the economy because of the tariffs, which I'm super excited for because I'm a big believer that there needs to be change.
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whether you're looking for a contract or a direct hire specialized recruiting group is ready to find the talent you need so go to srgpros.com right now to get started that's srgpros.com specialized recruiting group a tailored approach to hiring our administration no question about that because the route that we're currently taking does not seem like a sustainable route the head of the federal reserve jerome powell always states that which i completely agree with but
And it's funny to me that all of a sudden everyone's like, yes, we're going higher, but yet they're not even, you know, in effect yet. It's not until, what, January 20th that I believe he takes office. So, and even when he does take office, it takes time.
yeah to put these policies in effect and the short-term inflation should be picking up because the cpi data report that's released every single month tracks inflation is going up or down what do you think is going to happen when the cost of gets sold based off of these import taxes right because that's what they are these taxes that are being charged to importers
They always, any form of tariff or increase in these taxes will get passed down to the consumer, right? And I think that's just really important to note where I still believe the route that they are choosing to take in implementing these tariffs, I'm willing to try it out because I'm sure you've seen all the different articles in the news where they say, oh, you know, for the average family,
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Chapter 8: What strategies can minimize trading risks?
To my understanding, Doge has a now $15 trillion market cap. It's almost not considered, I don't want to call it a meme coin. To me it is, because I feel like the whole concept behind it, the only reason it's been legitimized is because of Elon. But now even this whole DOGE administration. But when it comes down to Solana, do you know what that market cap is?
It's the third highest coin, so it's even higher than Doge. Shit.
I believe.
So then technically, has it gone through three bear markets?
Solana is probably here just then. Two or three, yeah. It's up there. And Bitcoin just became the sixth most valuable thing in the world, I believe. I think it surpassed gold. Surpassed gold. And I think... Or no, it surpassed silver last week and gold this week, right? Something like that. Isn't that crazy?
Dude, I see all the headlines when I see that. I mean, even for me, I've been in this industry for over 10 years and paying attention to these currencies. And even when I see those models, I'm like... I get FOMO. And I think that's okay to admit of like, man, like maybe I should have held in a little bit longer. Oh, so you had some. Yeah, yeah, yeah. I bought at 22,000 and then I sold at 55,000.
So you made two and a half X. Yeah, yep. And you can't even be too mad about it. No, anytime it pulls on back, I'll buy one.
that's all I do again I do it with a dollar amount in which I can tolerate I always say this one thing don't put yourself in a position in which you cannot tolerate and also if you cannot tolerate the time that it might take for it to recover I think that's one of the best positions to be in where you know if you can really only afford a thousand dollars and live without it and sure you might not make a million dollars out of it but you really think you're going to make a million dollars when it's
at 90 000 already and expected to go to 100 at that point you're just putting yourself in my opinion in more of a position to fail because you have to go through that roller coaster of the phases it goes through right like rallies and it might continue to skyrocket 100 maybe 110 maybe 130 what's the downside just like we saw in the last bear market not only did we see a significant pullback from like what 65 67 000 all the way down to 16 maybe 14 000 yeah somewhere
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