In Case Elon Musk's SNL Effect Extends To Stocks

Before Elon Musk hosted Saturday Night Live, market technician extraordinaire Tim Knight, host of the Slope of Hope blog, offered the following scenario. 

So far, numbers 1-3 have transpired. Below, we'll look at a couple of ways of hedging Tesla (TSLA) in case #4 transpires.

As it happened, Musk not only didn't pump Doge on Saturday night, but calling it a "hustle". The crypto coin subsequently tumbled from its highs overnight. 

Why Should Tesla Drop Because Of SNL?

Should shares of Tesla drop because of the lackluster performance of its CEO/"Technoking" on Saturday Night Live? They shouldn't, but we live in crazy times. Why should a cryptocurrency drop because of Musk's performance? R.W. Baird market strategist Michael Antonelli put it as well as anyone: 

The Crypto-Stock Connection

In our last post talking about crypto and Tesla (Tesla To Dogecoin: Rotation Or Simulation?), we raised the prospect that speculative fervor in crypto might have syphoned off some investor enthusiasm for cult stocks like Tesla. In that post, we also mentioned Roko Mijic, who, in an odd twist suggesting this all might be a simulation, is responsible for creating the happy family below. 

Grimes, Elon Musk, and their son X AE A-XII in Starbase, Texas (photo tweeted by Musk).

On Sunday, Mijic scoffed at a Twitter thread by crypto skeptic Stephen Diehl, but it occurred to us that some of the same skepticism could apply to stocks. 

Maybe that's another way the eventual popping of the crypto bubble could spill over to stocks. In a previous post (How The Next Crash Happens), we speculated that companies putting crypto on their balance sheets before the crypto bubble pops could lead to a market crash, but we didn't consider the psychological spillover of young investors wondering whether, like cryptocurrencies, stocks were also offered to the public for reasons other than making their buyers rich. With all that in mind, here's our look at hedging Tesla. 

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Disclaimer: The Portfolio Armor system is a potentially useful tool but like all tools, it is not designed to replace the services of a licensed financial advisor or your own independent ...

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