The bubble already burst?

Wow, this is really fast! Immediately following my blog calling a gigantic bubble for TSLA, it fell off the cliff over 20% next day! What a perfect timing, right? Not really. I actually went through a roller-costing journey with my TSLA shorts! When TSLA shot up 200 points within two days to reach 700s, I thought it should be safe to bet it wouldn't jump another 100 points for the week. So I placed a weekly income trade to bet TSLA would not reach $835-850 with a bearish call spread. Oh, boy, TSLA immediately shot up another 160 points the next day to top over $900!! Not only I got a lot of eggs on my face, it was also really painful. That was the moment I posted my blog, officially calling it a bubble! Well, maybe the Market God wanted to save my face, it ordered TSLA to plunge immediately. So I went from a total loss to a perfect 100% gain from this income trade for the week. I have another trade to bet TSLA will decline to $700 by March. It seems it won't take that long if the current bubble bursting pace continues. Of course I'm not that naive to think that this is the end for TSLA. Far from it! That will be revenging rebound or I can be totally wrong that TSLA will simply make a moonshot to above $10,000 as one analyst has predicted. This is kind of madness we are seeing with TSLA. Just use your imagination and anything can happen. I'm not smart enough to tell you whether or not this is right or wrong as we are dealing with something not based on rationality but pure sentiment and boldness. What I can tell you is that it is very much reminiscent of similar kind of madness during the dot.com bubble era. It was late 90s when I saw a newsletter predicting that INTC would jump to $500 soon when it was well below $100 back then. Well, when people lose their mind, it is useless to talk rationally. I was one of them and was believing INTC was on its way to top $500 soon. Then everything has become a history. Not only INTC has never reached $500, it has never even top $100 and actually it is still below its all time highs reached in 2000 after 20 years!!

I know people love to think this time is different by arguing that TSLA is revolutionizing the car industry and pioneering the EV business. Of course I know that. But INTC was also in the same position back then for the chip industry when the whole computing industry was just emerging, right? This is just my way of thinking and by no means I'm trying to convince you that TSLA cannot reach beyond $10K someday. Just be cautious though with this kind of mentality for long term investment. This is all my point, take it or forget it!  I certainly don't have the ego trying to prove I'm right here. All I know is TSLA is not an investment but a casino type of gambling trade that one may make some money for either direction.

Just a quick word about the current market. As I said last weekend, I was more leaning towards the bullish side for this week. Luckily I was correct by betting for that and I have been happily earned some quick money by shorting the volatility. Actually I was a little bit crazy by selling short TVIX but it turned out to be a quick gain as it was haircut by more than 10 points off within days when I covered my shorts. Actually we closed two weekly income trades with 100% gains today. Now I'm telling my Family that it is the time to bet for the downside again after the herd has forgot the recent pain and is chasing highs again. I love to see this kind of volatility. After all as I have said, volatility is money!!