Tesla (TSLA) is the stock of the day as the electric vehicle maker has requested shareholder approval for a stock split.  There aren‘t more specifics yet, but the company split five for one back on August 31, 2020. 

So should you be chasing it here?

Here’s the deal – I think the stock goes higher, but I think it’s not for the faint of heart either.

The last time the company announced a stock split, shares rallied higher, and when the split happened on August 31, 2020, the stock hit a high of $502 and closed at $475. Then it lurched into freefall closing at $325 on September 8, and yet, the stock is up 129% from that split close.

Only three sectors are higher, underscoring the bifurcation of the market. Retail investors are buying growth and institutions are still cowering in doubt.

• Technology
• Communication services
• Utilities

The two-year bond auction was sloppy and that took the wind out of the market, which already lacked conviction.

Only 41% of tendered bonds were accepted.

I will say investors have an excuse to sell here, and they are reluctant and that might be the most bullish signal of all.