Bitcoin And Tesla’s Stock Falls: A Shift In Capital Flows

0
Bitcoin And Tesla’s Stock Falls: A Shift In Capital Flows
<a href="https://pixabay.com/users/MichaelWuensch/">MichaelWuensch</a> / Pixabay

Commenting on the declines in Bitcoin and Tesla’s stock, and today’s trading, Gorilla Trades strategist Ken Berman said:

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q3 2020 hedge fund letters, conferences and more

Bitcoin And Tesla Trading Deep In The Red

The major indices are all trading lower at midday as stocks pulled back slightly across the board after hitting new all-time highs last week. The overnight session saw a clear risk-off shift in Asia and Europe, as the COVID picture continues to be grim in several European countries, but despite the bearish open, U.S. equities have been creeping higher in early trading. All eyes are on the political developments in the aftermath of last week's turmoil, with the Democratic party pushing for the removal of President Trump before the end of his tenure.

This Hedge Fund Was Up More Than 100 Percent For 2020

InvestingADW Capital had an incredible 2020 with a 119.2% net return for the full year. At a time when most other funds have struggled with relatively low returns, ADW posted double-digit returns in several months of 2020. In December, the fund returned 19.91%, while in November, it posted a return of 39.63%. For the fourth Read More


Some of the strongest assets of the past few months are deep in the red at midday, such as bitcoin and Tesla (TSLA, - 5%), the leading stock of rally on Wall Street, while the dollar extended its rebound, suggesting a shift in capital flows. The domestic economic calendar was empty this morning but the rally in Treasury yields continued as investors remain upbeat concerning the long-term economic outlook and the Biden administration's stimulus plans. Confirming the stimulus-related optimism, small-caps have been spearheading this morning's bounce, with the Russell 2000 already getting close to its record high on the heels of its strong start to the year.

Market Wrap

Dow: 31,036 , - 62 or 0.2%

S&P 500: 3,811 - 14 or 0.4%

Nasdaq: 13,106, - 96 or 0.7%

Russell 2000: 2,083, - 8 or 0.4%

Market breadth has been relatively strong this morning, with decliners only outnumbering advancing issues by a 4-to-3 ratio on the NYSE at midday. No stocks hit new 52-week lows on the NYSE and the Nasdaq, while 119 stocks hit new 52-week highs. The major indices have been trading above their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday buying pressure. The new multi-month highs in Treasury yields are having a strong impact on the key sectors today, with financials holding up well amid the risk-off shift, together with tech and healthcare stocks, but with the real estate, utilities, and energy sectors lagging behind. Stay tuned!

No posts to display