The trade last year was to buy oil and short Tesla. This year so far it's to short both.
Tesla shares are down 13.4% but oil companies aren't doing much better with WTI crude oil down $3.49 to a session low of $76.74. Selling accelerated into settlement and crude has completely reversed after hitting a four-week high in early trade.
The market is struggling with over-supply as SPR sales continue and China suffers a brutal wave of covid. Some market participants are looking towards the full China reopening while others are concerned about a global recession.
Technically, I don't put much weight on an outside day following a holiday period and would prefer to wait and see what the rest of the week brings. Tomorrow we get the ISM manufacturing survey.
Keep an eye on crude post-settlement trade.