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Tesla to join the S&P 500

JPN225 – Weekly Candlesticks
Source: GKFX / MT4 (November 17, 2020)

JPN225 broke through historic resistance last week and this week has taken out 26,000 for the first time since 1991 in what is potentially a new long term bull market. 
 

TAKEAWAYS


•    Bitcoin reaches $17,800 after slicing though 17k
•    Tesla will join the S&P 500 index next month
•    Japan’s Nikkei index reaches above 26k, its highest since 1991
•    British pound gains over talk of a ‘landing zone’ for a Brexit deal
•    DAY AHEAD: UK CPI, Eurozone CPI, Canada CPI 
 

GURU WISDOM


“You can fail at what you don’t want so you might as well take a chance at doing what you love.” – Jim Carrey 
 

MARKETS


Bitcoin flew though $17,000 to reach up to $17,800 and it’s highest in nearly three years. The crypto is up $4000 in November alone in what is becoming a parabolic move higher.

Japan’s Nikkei index built on its 52-week highs with its first close above 26,000 since 1991. Asian stocks were mostly positive, buoyed by the positive vaccine and trade news. The rally in European markets stalled after big gains on Monday. 

On Wall Street the Russell 2000 index of small caps was the outsized gainer after reversing early losses. The moves were put down to a short squeeze whereby short-sellers have been forced to buy back the ‘most shorted’ stocks – which have now gained 10 days out of 12.

In FX markets the dollar edged lower while the pound gained on talk of a possible ‘landing zone’ – the phrase given for a broad outline of a trade deal without the details - was said to be close. Gold turned lower, remaining below $19000 per oz while oil edged up.
 

Tesla


Tesla (TSLA) stock jumped as much as 13% to touch highs last reached in October before pulling back. The gains followed news Tesla would be admitted to the S&P 500 index after reporting five consecutive quarterly profits. 

The decision comes after the committee that puts together the index snubbed Tesla last quarter in favour of online shopping site Etsy and others. Tesla will instantly become one of the largest weights within the index. Traders have been bidding up the stock ahead of its index admission with the idea of selling stock to index funds and ETFs who will now have to buy it for the fund.
 

Nikkei


Japanese stocks continue to push higher after last week’s historic range breakout. The index took out 26,000 but remains well below all-time high of 38,957. The 29-year high is being held up by gains in the country’s big healthcare companies amid the positive covid vaccine news.
 

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