So what caused tesla stock to pull back today? What's going on team, it's ricky with tech, but solutions and a lot of people are asking this question as tesla goes from highs of 710 during normal market hours and it dropped to lows of seven 675. If i'm not mistaken, uh around 680 uh, which is right around the sma line, i'm not very surprised. A lot of you guys know, especially if you're part of the learn plan profit group. I had an active short position on tesla.

It wasn't anything crazy. It was only 150 shares. I took my initial short position at 7 19 and i decided to lock in profits as soon as tesla broke below 690.. If you watch the live trading session today, you wouldn't, you would have seen exactly just that me cover uh or buy to cover uh my profit on the tesla short.

But what is it that caused this negative catalyst? I want to share three things. First, off on the technical aspect: let's be honest, tesla trading at 720 - a share - it was not a cheap price right. Tesla was previously struggling to break above 700. This was a previous resistance level.

Now that it broke above 700, you guys could see that almost every time that it pulled on back 700 now acted as a support level, which was great. We were testing that support level multiple times today we broke below it on the technical aspect and as well as based off of certain use. This is what it originally started it where tesla is tumbling, because autopilot is being investigated. Nothing is set in stone.

It's just the news that again they're looking into tesla and there's certain amount of vehicles that they're looking into as they think of it, to be a reason on why these series of accidents are, you know happening at the end of the day when it comes down To the series of different accidents that have happened with tesla, more often than not uh, they are the driver's fault, and a lot of you guys have seen the news when it comes down to different accents. It's usually individuals uh trying to mess around with that autopilot and not taking it seriously enough uh. So it makes sense on maybe why they want to investigate it, just to make sure that tesla isn't leaving any open doors when it comes down to safety, but tesla year after year is one of the top rated safety vehicles, especially with their tesla model y. Is one of the first cars that ever you know got five stars so make sure you take that into consideration? It is unfortunate news.

It shouldn't encourage you to panic. Nothing was said where you know you know tesla's done for right. They need to change certain amount of things, uh they're just being investigated. This is unfortunate.

This, of course, uh, creates some questions for investors and some fear, so it makes sense on why it pulled on back. The second thing that i want you guys to look into is how many of you guys saw that a r k k is being now shorted by michael bury, and i don't know if michael berry is taking this seriously but um. At the end of the day, you know uh. This guy is known for the big short which uh made an absolute killing right.

He was the one that was shorting the real estate market or the housing bubble uh, and when the housing crisis happened, uh, he made a ton of money right, that's that's where he really established his name and ever since then, first off, it's an incredible movie. If you guys haven't watched all right feel free to check it out uh, but i just feel, like you know, he's been talking about shorting tesla since last year, um early or late 2020. I remember seeing an article late 2020 of him shorting tesla, but you could see that again, even from previous levels, to where it's at now. It's nothing significant uh now he's showing ark and if you guys know that's kathy woods, etf, uh ark has again a big focus in tesla stock um.

So you can see that why? Maybe that act as a further negative catalyst, so definitely not a great day for tesla uh, but a great day for those that potentially want to buy the dip on tesla. Now, one of the things that we have to cover is, of course, tesla has found a support level before at the sma line it doesn't have to bounce here, though, so it's nice to see it pull on back. Finally, i'd love to buy a couple more shares. Uh, but if tesla does begin to really sell off, you can't be surprised if we do break below the sma line, as patterns tend to repeat themselves, but they don't always have to.

So. Let's wait for that confirmation of a reversal. I have all my alerts set right here if we break below the sma line or we break above 700, so i either know to buy more or to short more on tesla, so i'm super excited to follow up with it again. The only people that freak out on pullbacks are those that are super emotionally invested and have too much money in the stock that they have no more money to buy back at the lower level.

So just make sure that if you're someone that's freaking out um, this video isn't to call you out or anything like that. It's really just to open your eyes that you know we've all been in that position where sometimes we buy too much at these overbought levels and when something doesn't necessarily go according to plan and it pulls on back um. You know it's kind of a a tougher situation to tolerate, and that's all we want you to do is to be able to put yourself in a position in which you can tolerate. So, even when these pullbacks do happen, that you're you know set up to be able to buy the dip and then ride the recovery and even make more than you were uh when it was previously trading at that price point.

So i wanted to update you guys on that and that's really just it so uh there wasn't too much activity with the overall nasdaq market. I did see that it was a little red day, but nothing too crazy. Some days are obviously better than others, and this is one of the things that we said within the learn plan. Profit live training session today, and it's something that i want to share with you guys it's days like this, that really put into perspective that it's not about trading every single day, but treating when it makes sense.

So days like this. Instead of trying to force a trade, it's sometimes even best to not take any to allow the opportunity to really present itself so once it does settle and find the support we can, you know, buy the dip and be able to again set our future selves up. For success, so let me know if you guys have any comments and put them down in the comment section. I hope that i earned your thumbs up.

Consider subscribing and i will see you tomorrow for a live training session. If you guys want to join us, that's going to be that second link down below. Like always, let's make sure that we end the year on a green now, take your disney team!.