Kamala Harris for VP; Tesla in the news again
|The Democratic presidential candidate Joe Biden chose Kamala Harris of California as his running mate. She is the first POC woman to appear on a major presidential ticket in US history. It was not that of a surprise choice given all that is happening in the United States.
The biggest positive surprise for the Democrats to win the White House easily would have been if Michelle Obama was chosen (and wiling, of course) to be Biden’s running mate. It would have divided the country further and probably ensured another third term for the Obama presidency. If Biden wins the election, he is more of a one term president. Then Harris could go on to become the first woman president.
Wall Street apparently is happy with the choice of Harris as the Vice Presidential candidate. In her past responsibilities, she has come out rather soft on tech companies and with investment banks. She has been supportive of middle class tax cuts and a $15 per hour federal minimum wage.
At the end of this month, Tesla will undergo a 5-for-1 stock split. What it means is if you already have Tesla shares you will have 5 shares for every one share you hold. If the price of one share is $1500 that will be cut to $300.
The cheaper price of Tesla shares should mean that it will become more accessible for retail traders. The Robinhooders must be excited and this is rocket fuel for them with more speculative actions. Think Tesla will join the S&P 500 soon. If so all the index following funds across the world will be forced to buy Tesla whether they like it or not. It is a very painful time for the short sellers in Tesla. There are quite a bit of them.
Equities
The S&P 500 has now filled every gap that existed from Feb 20th. The move up to 3382.50 and subsequent fall doesn’t look impulsive. If there is more momentum to the downside it can turn out to be impulsive. But there will be one more attempt higher before it turns down.
Bonds
As expected the bonds broke down. The move below 179^30 is significant. Any pull back should be limited to 180^05. The next leg of the down move should be rewarding.
Euro
The Euro declined from 1.1916 to 1.1722 which has been an impulsive move down. The pull back to 1.1816 must have completed the retracement. The next leg of the down move can take prices to the 1.1500 handle.
Gold
Gold fell out of bed and plunged in the last many days to 1870. The subsequent rally can even take prices to 2000. The next leg of down move will be something to look for.
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