Thank You. I appreciate it!

I prefer to use the chart of XBI even if trading LABU or LABD as the latter two are leveraged ETFs that track the same index as the non-leveraged XBI (S&P Biotech index). Biotechs are volatile so the decay from the 3x LABU & LABD cause ‘distortions’ in the charts over time.
Here’s my daily of XBI which is coming off overbought reading while just below the big 95-97ish resistance. If the stock market holds up, XBI (or LABU) would offer objective entries on a solid breakout above 95-97. Otherwise, the recent rally is likely over with another leg down to come soon.

Answer to your first question: Probably. Personally, I do not care to go long TSLA but was stating that I wouldn’t short it where it is today, even if I think the market is going lower from here, due to the fact it has fallen to support with extreme oversold readings on the RSI not seen since the Oct 2022 bottom.

If I were more bullish on the stock market right now, I would go long TSLA here & I think a case can be made for those short the market to go long TSLA as an indirect hedge but again, should we get a very impulsive drop in the market, TSLA is likely to get sold down due to indiscriminate/proportional (to the component’s weightings) but if the market doesn’t have a hard-down, it is possible for TSLA to rally even if SPY & QQQ drift lower or sideways (just as it has fallen while QQQ & SPY recently went to new highs).

click on any of the last few words in italics “viewed by clicking here” in the sentence below the video on this post