The markets are closed today, but I want everyone to be ready to make a move on a stock that's been filling up the headlines recently: Tesla Inc. (NASDAQ: TSLA).
Tesla stock losses topped $575 billion this Tuesday and investor patience is wearing thin. That's a near 50% drop since last November when stock values peaked at over $1 trillion.
Sorry to the Tesla fans out there, but this isn't a sign to buy in. This isn't a quality stock on sale. It's a stock heading into dangerous territory. TSLA's 50-day moving average is inching closer and closer to its 200-day moving average, and soon we could be looking at a "death cross."
If that happens, there's no telling how far Tesla will drop.
So it's time to sell, period.
And unfortunately, Tesla's not the only stock facing hard times ahead. Tech sector "growth" stocks that rely heavily on debt are going to keep getting crushed and may not recover to their previous highs as long as interest rates keep going up.
There are some sectors where you can take refuge, though. Check out this video to see exactly what to do after you've sold your Tesla position...
Most investors haven't even grasped this yet, but there's a huge capital shift coming that's going to change the fabric of American life. It's going to be as disruptive as when Apple introduced the iPhone, or when Netflix changed the way we watch television.
Every time shifts like these have happened, those on the wrong side of them ended up getting crushed. But those on the right side? They made life-changing fortunes.
I recently went live for an Emergency Market Summit to talk about what's coming up next and explain how investors like you can get in before this shift occurs, protect your wealth, and take advantage of market volatility to secure the best potential profits.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.