If you had invested some money when Tesla was at $60, or $90, you would have already made at least a 10X return. But that's not what this post is about. It's about the rest of his activities on crypto and stocks. To be precise, you should follow Elon Mush only to short sell anything he has supported in his latest Tweet. With Musk being a master of pumps-and-dumps, it's a no brainer.
Musk is a sociopath
Musk is not doing pumps-and-dumps to make money. Well, he is making money along the way, but this is not his main motivation. Musk wants people's attention (approval is not required - he feels equally important both when you agree and when you disagree with him). Musk didn't like Dogecoin, or Bitcoin. He liked the fact they had millions of people following those coins, and those millions of people were not following him on Twitter. Influencers are playing the same game - but they are doing this to gain followership that will bring them more revenue. Musk is doing it just because he needs to feel important. Similarly, Musk doesn't really care about democracy or free speech on social media platforms, or specifically on Twitter. He thought though, that if he played the hero of democracy and free speech on Twitter, he would gain more followers. That's how he thought about buying it. Or, well, sort of. When he realized what he was getting into, he started looking for a way to back off.
Musk's herd is a goldmine
As with most sociopaths, Musk has a huge herd of followers on his Twitter account. Those empty-headed followers not only listen to his opinion, but also act on that opinion. He says Doge to the moon? The herd goes to buy Dogecoin. He says Tesla may start accepting Bitcoin? The herd goes to buy Bitcoin. He says he is buying-out Twitter? The herd goes to buy Twitter stock. The herd is unable to comprehend those tweets are simply fireworks, that go on and off. They blindly buy whatever their god tells them to. But this lasts for 2-3 days. Then the price goes south.
Twitter stock went up to $52 within 2 days upon the announcement, and then when analysts discovered that - as with everything else - this was just a firework that went on and off, the price started going down. On Friday, Musk officially announced he is not buying Twitter. The price plummeted to $36.80 - $35 and a few cents in the after-hours trading session. If you had short-sold Twitter stock, not at $52, but even at $50, and closed your position not at $36.80, but at $40, that would be getting you a 20% return in just 3 months - 30% if you were lucky. And that's on the spot market. If you are into margin, you could easily get a return anywhere from 40% to 300%.
It's a no-brainer!
