On Tesla's Implosion Today

Well, this is a pretty interesting situation...

Good afternoon:

This morning, I noted that the Direxion Daily TSLA Bear 1X ETF (TSLS) had just cracked its 20-day moving average. From a momentum perspective, this certainly signaled a possible breakdown in TSLA stock.

The primary reason I made this observation had nothing to do with President Trump or Elon Musk. It had everything to do with the technicals.

• No Fresh Catalysts: Policy tailwinds were gone.

• Technical Exhaustion: RSI diverging, volume declining, failed breakouts above $340

• Structural Vulnerability: Price action was increasingly driven by options flow rather than fundamentals. When dealer hedging reverses, support evaporates.

This wasn't betting on collapse. It was recognizing that Tesla had become a "liquidity trap" where retail options speculation drove artificial rallies, but institutional support was absent.

After a 140% run with exhausted catalysts, the risk/reward favored a tactical fade.

That break under the 20-day EMA for TSLA and the crack above the 20-day for TSLS made…