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70173801 Private ID: 70173801
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    In just 72 hours, a meticulously orchestrated onslaught against retail investors unfolded, offering yet another sobering lesson:
    1. Market Action: From Wednesday through Friday, the market behavior witnessed in the past three trading sessions resembled a textbook example:
    March 20th - Tombstone Candlestick: An explosive earnings report triggered an initial surge, propelling the stock to a high of 150 before swiftly reversin...
    Can it break today's high
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    $JD.com(JD.US)$ Still optimistic about JD
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    70173801 commented on
    $Sea(SE.US)$ Hopefully this time stays above $40 and move towards  $50+
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    What is the price of the stock?
    Stock price = valuation × performance.
    The valuation is a discount on future growth expectations. A growth stock with a future growth rate of 50% is worth a higher valuation than a value stock with a future growth rate of 10%.
    Performance is how much profit is earned per share.
    The so-called Davis' double kill means killing valuation first, then killing performance. For example $Tesla(TSLA.US)$ That's a great example.
    How did Tesla's stock price soar step by step in the beginning? Pull up valuation first, then drive performance. Rapid growth, high price-earnings ratio. Performance increased again, and stock prices began to soar.
    Now, valuations have been slashed to a level that is not much higher than that of traditional car companies, and performance has begun to fall short of expectations. The stock price fell further, from 400 (1200 before the stock split) to double digits.
    How is the valuation calculated? Three parts: expected growth rate, sentiment buff, and risk-free interest rate. Tesla's growth rate has slowed, emotional aura has declined, faith has collapsed, and treasury bond yields have soared. The valuation eventually dropped below 20 times (it was actually seriously underestimated at the time).
    Furthermore, in terms of performance, weak demand and increased competition will inevitably lead to a decline in profit margins due to price reduction promotions. However, compared to other car companies, including traditional car companies, Tesla's performance should still lead the way.
    There is an exponential relationship between valuation and performance when it comes to Davis' double kill. The valuation was cut in half and the performance was cut in half, and the stock price reached the knee. Once everything is cut in half, the stock price will reach its fingertips.
    Currently, technology stocks are generally under pressure. This wave of valuations has almost destroyed it; it is time to kill performance next. Department...
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    $Tesla(TSLA.US)$ Stand still at 179 and watch 185
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    $Tesla(TSLA.US)$ Breaking today's high should follow an upward trend
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    The week starts tomorrow. Crucial week ahead. Fed Powell speaking, potential bottom coming for a huge reversal to new all time highs or a massive bear market squeeze coming again!
    Do you know your levels to watch? Are you prepared should it come?
    Watch the videos to know your supports and resistances!
    We overall had a great week! Looking foward to the upcoming one!
    As always, trade safe & invest wise!
    Subscribe to my YouTube channel for your weekly market outlook and technical analysis vi...
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    $Meta Platforms(FB.US)$ Giants become dog heads, chives become pork heads
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