Carter Worth of Cornerstone Macro took one look at Tesla’s chart after Monday’s explosive move in the stock and couldn’t help but warn of a reversal.
“We are literally going up and to the left. You’re not allowed to do that,” he said during a segment on CNBC. “It has all the elements of what you’d call parabolic.”
He explained that we’ve seen action like this before — in bitcoin BTCUSD, -0.82% , in marijuana stocks and during the dot-com days. “Even if it triples… the path higher presumptively passes through a lower price,” he said. “It’s just too hot.”
Here’s the full breakdown from the “chart master”:
And here’s a tweet from him that hit early Monday:
The day after his bearish take, Tesla TSLA, +17.31% shares opened with another double-digit percentage gain. If it was parabolic before, then it’s really parabolic now. Of course, such a move likely only fortifies Worth’s point, even if it was perhaps ill-timed.
“There’s no way to approach it fundamentally,” he said. “You can make up a long-term story for anything when you have no profits.”