Weekend Musings

Elon was at it again last week. This was the unveiling of his new Tesla truck that is supposed to compete directly with the Ford F-150 and other similar trucks. Elon was very proud of this new “magic glass” technology that he claims is absolutely impenetrable. He must be marketing this new truck to the Medellín cartel. Anyhoo, it was a complete disaster and it had to be a little embarrassing even for a sociopathic billionaire.

David Einhorn, one of the largest hedge fund managers who is also short TSLA along with Jim Chanos (interview below), has a problem with Elon Musk and his receivables and wrote him this little note the other day.

Anyway, I guess only the TSLA fanboys thought this display was cute because the market took the stock down 6% on Friday. We’ll see if this is the beginning of another resumption lower or not, but I’d rather drive a Pinto than that piece of crap.


In other news, hedge-fund firms reported the eighth straight month of client redemptions in October, the longest stretch of withdrawals since the 2008 financial crisis.

Is that bearish or bullish though?

In an AAII Investor Survey – found only 20.3% of investors were bullish vs the 38.0% norm & 44% were bearish vs the 30.5% norm. Stock market sentiment indicators are contrarian. Unusually low optimism is typically followed by above-average returns and unusually high optimism equals low returns.

Also, the VIX right now is historically shorted. This means that hedge funds and their ilk think the market is going to take a big leg up. You can look at this as a contrarian indicator if you choose to, meaning these VIX shorts are wrong and the market will be taking a big leg down.

Below is the interview with Jim Chanos who is one of the best short-sellers of our time. He just profited from an amazing short call on GrubHub (GRUB) by the way from significantly higher prices.

He is short Tesla, his favorite, and gets into it about 30 minutes into the interview, but I recommend watching the whole thing. Lots of good stuff. He thinks that TSLA is “worthless” and tells you why. He also discusses the criminal enterprise that was Solar City, another Musk venture.

Have a great weekend and stay confused….I know I am.

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