Tesla Stock Jumps 43% Already In July As U.S. Equities Close Week Mixed
Keith Schneider | Jul 12, 2020 04:39AM ET
US equities once again put in a mixed performance with small caps (NYSE:IWM) lagging, down -.76% for week, while Nasdaq 100 was up +4.67 % and registered yet another new all-time high on Friday. Breath figures (NYSE:SPY) show the number of stocks above their 200-day moving average at 41%, a divergence from price action as the key benchmark has been trading above that key average for almost a month.
Using stimulus money, hordes of Robin Hood traders have used their new riches to buy Tesla (NASDAQ:TSLA) and other NASDAQ stocks, helping Elon Musk to become richer than even Warren Buffet. TSLA’s stock has jumped 43% …for the month! The traditional Robin Hood mantra “Rob the Rich and Give to the Poor” has a new twist. It is funny and ironic, short-sellers who are mostly “smart money" such as hedge funds and other professionals who bother themselves with fundamentals lost 18 billion recently being short TSLA. This is making Robin Hood traders look like geniuses, although this will most likely be short-lived. Our belief is momentum and relative strength are edges not to be ignored, regardless of the reasons, if you manage the risk.
This week’s highlights are:
- Risk Gauges improved to neutral
- Volume patterns are inconclusive
- Market Internals improved short term, but still, look heavy intermediate term
- Both IWM and DIA have inside day patterns
- Grandma Retail (XRT) has turned positive and in a bullish phase
- Technology (XLK) Semi’s (SMH) and Growth Stocks (VUG) led with improving momentum
- Clean Energy (PBW) and Solar (TAN) have been top market performers (thank you Robin Hood Traders) while fossil fuels remain under pressure
- The Euro and the Chinese Yuan looked poised for more upside verse the dollar
- Copper cleared some key levels
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