NIO is extremely over valued here, their competition in China is fierce, and 
TSLA is leaps and bounds ahead of what they can achieve. Quarterly deliveries were like 1/10 of what TSLA delivered in the last quarter that was announced...Sentiment is extreme and after complacency and euphoria we had a sharp down day at the top. There is a fund shorting it, and Ray Dalio bragging about his position in the stock recently. It's ripe for a short vs TSLA, which is about to rally in the weekly timeframe. Valuation is wild compared to TSLA, and competitive advantage goes to TSLA here, considering all variables and the sales it has in China as well as their pricing for made in China cars.You should short the same dollar amount of
NIO shares as you long TSLA shares to get the pair trade going. I'd aim for a retest of 21.33 in this ratio at least, or could go into new highs as well. A 5-15% position would be fine here. Risk is roughly 3.06 to make 12.16, so a 3.97:1 reward to risk ratio.Best of luck,
Ivan Labrie.
הערה
Higher high so far in the ratio. Looks like the trade will work.הערה
Trade still valid.הערה
This was spot on.
Public, timestamped track record. Free month of the desk: ivanlabrie.netlify.app
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Public, timestamped track record. Free month of the desk: ivanlabrie.netlify.app
פרסומים קשורים
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.