Markets Make Lower Lows, Tesla Battery Day, What to Expect
Last week was rough for the market as the S&P and Nasdaq draw lower lows on the daily chart. The Dow Jones Industrial was the only index to look in the best shape as tech continues to fall under pressure.
The main drivers for the market, which have been carrying pairs like GBPUSD and EURUSD, are tech stocks. In order to see a rebound in US indices and those major pairs would be for FAANG to have a good week, which might be the case. One factor to consider for Monday morning is the sentiment around Battery Day.
Tesla's Battery Day
This Tuesday will provide further insight on the development and advancements Tesla has made for their battery. The company is hyping up the news around the event as the EV maker will announce their new "million mile battery". This would be a huge breakthrough for Tesla and its stock, but will it be enough to push the markets and major USD pair up?
What to consider
A Barron's article analysts sounds uncertain for Tesla's rebound. He holds a price target of $272 a share which is nearly half of what the stock is worth now. However, quoted from the article, the author states that, "Anything below $100 per kilowatt hour, along with a credible plan to get there, should be a win for Tesla shareholders." Other analysts mentioned in the article provide a more generous PT in the $300s.
On top of this, COVID cases are rising back again as worldwide and US cases reach new heights. Profit-taking is another factor after the bull rally. The upside of investing now is very minimal considering the unlikeliness of reach all time highs again. As investors take their money off the table, the bigger question remains where those profits go back in to. Interest may move from heavy tech investments to dividend stocks. Portfolios may lessen the stake in the market overall. Next week will definitely be interesting for the market.
From a macro perspective, I'm looking at what could happen over time. I am also writing at the time of the futures market opening. Futures are dropping early on, and already down 14 points for the SPX500, but a lot can change over night and throughout the week. Tesla's rebound from lows shows investors are excited about the battery day report, but overall demand for stocks seems to be getting weaker. With analysts expecting tech to correct further, this week may be volatile.
Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.
Looking for a Broker?
Check out our favorite brokers & reviews! Find brokers available in your country, or our top rated brokers to consider.
Weekly Forex Forecast for GBPUSD, EURCHF, USDJPY, XAUUSD (10-15 January 2021) Hey everyone! Welcome to this week's forex forecast for the week ending January 15th, 2021. It's so great to be back, I hope everyone's had a fantastic holiday, and I hope everyone's motivated to work 10x harder than last year. I'm wishing everyone nothing […]
Throughout the year, we've seen many changes to the way we trade, how we manage risk and how we interpret the markets. The new insights we have gained over the months usually come after years of trading and adapting to ever-changing environments. We've done all that in a matter of months! Up until the New […]
Weekly Forex Forecast for GBPUSD, USDJPY, GBPJPY, XAUUSD (13-18 December 2020) Hey everyone! Welcome to this week's forex forecast for the week ending December 18th, 2020. I'm TraderBart with A1 Trading, and this week I'll be looking at GBPUSD, USDJPY, GBPJPY & XAUUSD. GBPUSD Price has been travelling in this ascending channel since March forming […]
Politics preventing new financial stimulus The economic recovery in the major global economic powers depends on several important factors. One of the most vital part, the spread of the virus and the government's answers to it. With a decrease in daily cases of COVID-19 to 50,000 in the U.S.A. Yet U.S. A remains the most […]
Our team has unfortunately received many reports of scammers using our content and pretending to be us. While we will continue to report these accounts to the authorities as we receive reports, we may not always catch them in time. Below our a list of things to look out for before making a purchase to any […]
Warren Buffett is one of the most idolised, investors in the world. At the time of writing , his company, Berkshire Hathaway, has a market cap of $495 billion and Buffett himself has a net worth of $79 billion. His approach to value investing, combined with his influence over the companies he invests in , […]