As the data seers at Tier 1 Alpha have explained in detail, 90% of the market is not trading on fundamentals. The biggest culprit? Mega cap stocks (eg Apple, Amazon, Microsoft, Meta Platforms, Google, Nvidia, and Tesla).
Case in point: the divergence between Tesla’s production numbers and its stock price.
“It was a bad report,” Industrials analyst Jay Van Sciver says of the production and delivery update the company provided Monday. “We were theoretically bearish, and we thought deliveries would be higher than what they came in. This is price cuts, lots of noise around revised vehicles and things like that, and you still saw a delivery disappointment.”
And yet, the manufacturer is part of the Magnificently Manipulated 7, which managed to go up +2% on a day 78% of stocks in the S&P 500 were down an average of -1.7%.
“Tesla was going down on the number, on the fundamental, but then it caught the basket bid, and all 7 of those stocks went vertical,” Keith McCullough explains in this clip from The Call @ Hedgeye. “That’s what happened.”
Click above for the full clip.
