As experienced traders know, the market often takes the road that leads to the greatest pain. It looks to cause the most amount of pain for investors. The reason for it is simple, when everyone is short, a few percentage points on the long side, force the hand of the shorts and lead to a short squeeze. That is why positioning is very important in the markets.
This year many fund managers were underweight equities, and overweight bonds, for an anticipated recession that never happened!
This is why everyone was rushing to equities by May to catch up with their benchmark. Again positioning is everything. We are now at a pretty bearish time for bonds.
As you can see in the chart below, S&P 500/bond performance is at an all-time high, and equities have outperformed bonds to some extreme levels.
One thing we do now is that the market is often mean reverting and periods of extreme outperformance are often followed by periods of underperformance.
Tesla is under a lot of pressure from both macro forces with higher rates as well as increased competition, specifically in the Asia region.
As you can see in the fundamental tab of TWS Interactive Brokers, the revenues have stopped growing as fast in the past few quarters. Check out IB for more of their services here.