$NIO TOP 20

We were expecting the worst yesterday after $TSLA's difficult earnings and $TSLA certainly had a tough day, down -11% at one stage and struggling to hold its $217 level, the entire structure for $TSLA is also at risk of breaking down if it doesn't hold its 200 Day MA right now at $215, so we will be watching this closely.

$NIO did not get dragged down with $TSLA yesterday thankfully but moved down in line with the market and did not go any lower than the lows from Weds. That does not mean that $NIO is out of the hot water now, it is still at risk of coming down lower and we want to see a bounce between the start of the buy zone at $7.38 and $7. No bounce here or it can not hold the previous low at $7 and the $NIO chart has become invalid, this is the same commentary as yesterday.

JAC, the factory owner that signs off on each of $NIO's vehicles has announced today that they are looking like selling their factory and the rumour is that $NIO will buy it.....this is going to cost $NIO around $600million.....I suspect they will pay this but a one off payment of $600 million is likely going to hurt their bottom line and puts more pressure on their cash reserves.

A share dilution at this price would be crazy and a damaging blow to shareholders, so we do not want to see them do this......I think it will come at some stage but we want to see it when the price is a lot higher and can absorb this shock.

A good point was made yesterday, UAE and a lot of institutions have bought into $NIO at a much higher price compared to where we are now, we can assume they did their due diligence, as we have as well, it is extremely unlikely that any of these companies will be selling now, Baillie Gifford has an average of around $14 I believe, they were also early investors in $TSLA and bought when the price was low there too.....these institutions do not care about holding long term and this is what we should be aiming for too.

I know it is hard to hold long term, I know many people have been holding for a few months already but this is truly how to win at investing, you need to be prepared to hold through the tough times.

Anyone who is holding $NIO since mid summer and is frustrated now that they are holding 2-3 months and the price is down 20-30% needs to take a long hard look at yourself, if you want to be a trader, then trade, if you want to be an investor, you need to put in the time.

Holding a stock for a few months is not a long term investor.

My plan remains the same, I will add in the buy zone if it goes under $7.38 and I will be cautiously adding with no rush.

Otherwise I will be focusing on adding to my other holdings.