Tesla’s Insufficient 28% Boost

“Here’s my gift-giving rule: Respect your current financial situation.” ~ Suze Orman

Dear Trader,

Welcome to today’s edition of Wall Street Connected.

This morning marked the debut of Tesla (TSLA) opening as an S&P 500 component. Tesla was given a 28% boost in price-per-share target by Wedbush Financial prior to today’s opening bell ringing, but this upgrade actually sent the stock down 4.1% in a matter of minutes.

While a 28% increase in price-per-share target by a major financial institution is typically a bullish catalyst for stocks, a mere 28% increase in price-per-share target fell short of Wall Street’s analyst consensus of a 43% increase in price-per-share target as Tesla entered its debut as an S&P 500 component. 

Surprising Move Wealthy Are Making With Their Cash. (Sponsored)

While Wall Street’s analysts have since stated they remain bullish on Tesla as they believe there is a ‘major increase in electric vehicles’ around the world, competition in the electric vehicle space has also increased dramatically in 2020, leaving Tesla less likely to create a potential monopoly in the electric vehicle space.

Due to what has turned out to be a “buy the rumor, sell the news” scenario for Tesla on its S&P 500 debut, Tesla opened about 6% lower this morning, while the S&P 500 opened about 1.5% lower. 

With Tesla having closed at a new all-time-high of $695/share on Friday, it may not come as a surprise that Tesla (TSLA) is ranking #1 on top searched stocks by financial professionals last week…

TrackStarIQ Data

Here are some highlights from FA searches last week:

RANKTOP SEARCHES BY FAs (Total Traffic) Previous Week [STOCKS]TOP SEARCHES BY FAs w/ AUM>$1B (Total Traffic) Previous Week [STOCKS]TOP INDUSTRY SEARCHES BY FAs (Total Traffic) Previous Week [EQUITIES]TOP INDUSTRY SEARCHES BY FAs w/ AUM>$1B (Total Traffic) Previous Week [EQUITIES]
1TSLAWFCBiotechnologyBanks – Diversified
2NIOIWSYAuto ManufacturersPrepackaged software
3AAPLBABADrug Manufacturers – Specialty & GenericInternet Retail
4TLRYAMDSoftware – ApplicationSemiconductors
6AMZNLMNDSoftware – InfrastructureConglomerates
7PFEPFEInternet RetailDrug Manufacturers – General
8MRNAWSMInternet Content & InformationSpecialty Retail
10SPCEAAPLDiagnostics & ResearchConsumer Electronics
11LCAHDDrug Manufacturers – GeneralHome Improvement Retail
12TSNPBCDAOil & Gas E&PBiotechnology
13SNDLABMLEntertainmentMetal Mining
14GNUSOSTKConsumer ElectronicsInternet Retail
15DKNGBCLISpecialty RetailBiotechnology
16SRNEFUBOCredit ServicesMotion picture and video production
17MVISGBTCAerospace & DefenseTrusts, misc
18BCDATSNPMedical DevicesFloor laying and floor work, misc
19NEWSSOLCommunication EquipmentSolar
20ALPPQEPCElectrical Equipment & PartsCutlery, Handtools & General Hardware

The Ipath.B S&P 500 VIX Short-Term Futures ETN (VXX), which tracks volatility, traded about 12% higher this morning as a result of increasing COVID-19 concerns.

When volatility trades higher, indices such as the S&P 500 typically trade lower as a result, which was the case this morning. While this morning’s slide on Wall Street may be concerning to some readers, in the eyes of experienced traders and investors, it can be viewed as a buying opportunity, especially for Emerging Markets.

With a democratic administration about to take office, many traders and ESG investors are expecting Emerging Markets to outperform U.S. markets, and using any dip they can to buy positions in Emerging Market opportunities.

You can explore those opportunities by clicking here. 

What We’re Reading:

  1. 2020 has taught many traders and investors that preparation is key in order to be successful. Ahead of Monday’s opening bell, many experienced traders and investors enjoy studying the top stock story developments which have taken place over the weekend. Here’s the past weekend’s top stock stories.
  2. With global urgency for a COVID vaccine continuing to increase on a daily basis, one company was recently granted authorization to distribute emergency doses of its vaccine. It’s one of the few stocks which opened green today. Here’s the stock…
  3. Despite the S&P 500 opening about 1% lower this morning, some analysts are ‘as bullish as bullish’ gets on the S&P 500 right now. Full story…

What We’re Watching:

Traders and investors hear about growth and value stocks on a frequent basis, but what about defensive and cyclical stocks?

One could say these go overlooked…

Fortunately, Markets & Minds wants to bring you up to speed.

Here’s the video.

What We’re Liking (Sponsored):


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