“”Diamond Hands” is a symbol used on Reddit signaling the intention to hold on to a stock or other asset” — Paul Ebeling
Elon Musk, CEO of Tesla, Inc (NASDAQ:TSLA) has issued a stream of comments about cryptocurrencies that have sent values for bitcoin and the meme digital currency Dogecoin trading up and down over the past several wks.
Tesla disclosed its Bitcoin investment of $1.5-B on 8 February. Its Bitcoin holdings helped generate profits in Q-1 through the sale of 10% of them.
The Chinese government’s move to bar financial and payment institutions from offering cryptocurrency services is the latest example of how crypto values can swing wildly on a single regulatory action or a Tweet from a figure like Mr. Musk.
There is a lot of leverage embedded into crypto ownership so there will be a spillover effect into equity markets in the short term and there is also quite the inflation fear as the market thinks the Fed might have to hike rates abruptly if prices keep rising.
Though the Fed policy makers play down any risk to the wider financial system
Wednesday, the benchmark US stock market indexes finished at: DJIA -164.62 to 33896.04, NAS Comp -3.90 to 13299.77, S&P 500 -12.15 to 4115.68, the and Russell 2000 (-0.8%) underperformed
Volume: Trade on the NYSE came in at 988-M/shares exchanged.
HeffX-LTN’s overall technical analysis for the major US stock market indexes is Bullish to Very Bullish long term in here.
- Russell 2000 +11.1% YTD
- DJIA +10.8% YTD
- S&P 500 +9.6% YTD
- NAS Comp +3.2% YTD
Looking Ahead: Investors will receive the wkly Initial and Continuing Claims report, the Conference Board’s Leading Economic Index for April, and the Philadelphia Fed Index for May Thursday.
Have a healthy day, Keep the Faith!