Stocks rallied globally as trade optimism spread market cheer. At the close the Dow was up 99 at 28,234. Trading volume was lower. Both BTS and IBD indicators remain positive.
Shares of Tesla shot higher on upbeat news. Tesla Model 3 buyers in China have begun receiving delivery notices which means manufacturing and sales in China are progressing perhaps better than expected. This means Tesla is closer to hitting its production and delivery goals for the quarter. Also in a research note Credit Suisse analyst Dan “Sell” Levy recently toured the Gigafactory near Reno and said the company is leading the industry in software and electrification big time as the Gigafactory has 44 gigawatts of battery capacity compared to 46 gigawatts for the rest of the industry combined. Short sellers in Tesla stock like David Einhorn aka “Silky Seamore” are not having a good Christmas as shares have doubled since June and are up 14% for December alone. Shorts are getting squeezed like wall nuts in a German Holiday nutcracker. The current short position is 19% of float down from 37% in June.
On the flip side of the coin, shares of Boeing were lower after rumors circulated that the company would have to further curtail or halt altogether its 737 Max production. Boeing’s board meets today in Chicago and will make the decision. The FAA told Boeing to stop predicting when the 737 Max will be cleared to fly and airlines like United and Southwest have push launch dates to March and April. Boeing currently cranks out 42 planes per month down from 52.