Tesla (TSLA) Tanks As Window Dressing Over

By Oct 2, 2013, 2:01 PM Author's Blog  

Tesla Motors Inc (NASDAQ:TSLA) is dropping fast. This is a direct result of window dressing at the end of the third quarter pushing the stock up far too high and far too fast. I wrote an article a few days ago explaining this very thing and why TSLA was jumping higher and also why you should expect a collapse after the start of the new quarter.

The bottom line is this simple fact. Fund managers buy the best stocks at the end of the quarter so they can fool their investors into thinking they owned them all quarter. This causes a big pop in stocks like Tesla and other best performers. The issue comes into play with this is excessive buying which will cease at the onset of the new quarter. When that new quarter starts, the stock has no more bidders and will fall quickly. This can be seen today on Tesla. The stock is trading at $185.65, -7.35 (-3.81%).

Tesla (TSLA) Tanks As Window Dressing Over

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