The Rise In Stocks Will Continue In The Next Week

With the promise of Joe Biden's additional stimulus package, the rise in stocks will continue next week.

The rise in stocks will continue next week. After the House of Representatives, the Democrats also gained the majority in the Senate. Thus, Joe Biden's $ 2,000 aid support expectations rose again. With the increasing expectations, most of the shares in the USA rose on Friday, breaking new historical records. The S&P 500 Index rose for the fourth day in a row (0.5%), with retail and real estate companies to hit the highest level in its history and closed a record. However, Friday's trading model could be an early warning sign from a technical point of view: SPX created a hanging man model. If the candle on Monday ends below its opening price on Friday, it allows for the bearish nature of the pattern. The hanging man model points out that traders who entered in the recovery recorded on Friday were buying too high and making losses. The pressure increases if they leave their positions on the first trading day of the week. Increased pressure could potentially spark a disposal. Dow Jones Industrial Averafe, on the other hand, has been rising at 0.2 percent for four days. On the other hand, although the index closed with a new record, it could not see above the historical summit on Thursday. While the Nasdaq Composite recorded a 1 percent increase in Friday's trading, it was only the second day's gain. Nevertheless, the index closed the day at a level close to session peaks similar to the S&P 500 and broke a double record on both the closing basis and the intraday peak. With a 7.8 percent gain in Tesla (NASDAQ: TSLA) shares, the Nasdaq 100 performed its best with a 1.3 percent increase. California-based electric car maker Palo Alto added $ 60 billion to its market value on Thursday alone. So much so that this gain is equal to the total market capitalization of General Motors (NYSE: GM). Electric car maker Tesla has increased its value by around 25 percent in almost 10 days since the beginning of 2021, and its share price has doubled since mid-November. With this gain, Elon Musk, the founder of SpaceX and Tesla, became the richest person in the world. Investor and CEO of Virgin Galactic, Chamath Palihapitiya stated that he believes Tesla will triple its share in value. On the other hand, Michael Burry of Scion Asset Management, who anticipated the 2007 real estate bubble as depicted in the movie "The Big Short", is now selling his Tesla shares for short. Burry warned that Tesla stocks will also experience a collapse similar to 2007.

Markets in 2021

Although the global stock markets have started 2021 strongly, it should be taken into account that there is uncertainty about how the year will turn out. However, with Congress now under Democrats' control, US President Joe Biden will be able to implement a new stimulus package as he wishes. On the other hand, if the Democrats raise taxes and tighten regulations, the benefits of the additional incentive may be nullified. However, given the tough struggle over economic recovery, they may want to wait for a more favorable time for policies that could damage business growth. Currently, investors are looking for a rise and are ready to buy shares at the most expensive level in history, despite the stress of political uncertainty, conflicting economic data and restrictions imposed to combat the coronavirus epidemic. Traders are only focused on the incentive and vaccination process. However, the following points should be noted: The value of the US stock market is now over $ 40.4 trillion, and the country's GDP is below $ 21.5 trillion. Commenting on the issue, Allianz Chief Economic Advisor Mohammed El-Erian said, "I have never seen the markets so detached from the economy before." In the US, 10-year Treasury bond revenue saw over 1 percent for the first time in almost 10 months. Rates increased in the last four days of the trading week, closing the week just under 1.2 percent. Bond yields surged last week since the first week of June. Bond yields are currently in an uptrend technically. Analysts believe that the blue tide victory last week, coupled with rising inflation and an even looser monetary policy, will further put the already falling dollar under pressure. However, the dollar continued to rise for the third day in a row on Friday, for the first time in two and a half weeks. Gold fell sharply on the last trading day of the week, erasing its weekly earnings. However, it fell by 4.1 percent, the biggest loss since November. It was only the dollar's strengthening and risk appetite that suppressed the yellow metal. The increase in bond yields in the US also raised the possibility of support for the US dollar. The reason for this is that the higher bond yields make the dollar more attractive, which offers a lower return than gold, which does not offer returns. Before these, gold prices reached a new historical peak in August 2020 for the first time since 2011, providing the highest annual gain in the last 10 years. Technically speaking, the precious metal slipped from the short-term bullish channel to the medium-term bearish channel and below the 200-day moving average. However, the precious metal on the weekly chart is still moving above the 50-week moving average, which indicates a long-term bullish channel. Bitcoin, the most valuable cryptocurrency, continues to write history. BTC completed Friday above $ 40,000, doubling its value since its record of $ 20,000 just three weeks ago. Just last week, BTC has gained a full 25.1 percent. When the sharp decline in volume in the chart above is examined, it is seen that this chart indicates a serious danger. It is noteworthy that the electric car manufacturer Tesla and the popular cryptocurrency Bitcoin have exploded in harmony. Jim Cramer of Mad Money stated that young investors who believe in Elon Musk's alternative energy dreams add value to Tesla shares. BTC is also known as an asset that young investors are interested in. On the other hand, when assets make such an increase, it is not possible to predict when a loss or explosion of the entire bubble will occur.

Upcoming Week

Monday TSI 02.30: Australia - Retail Sales are expected to decline to 1.6% from the previous 7.0%. Tuesday TSI 01.50: Japan - Current Account is expected to fall to 1.551 trillion yen. 17.00 TSI: USA - JOLT Jobs The previous figure was at 6.625 million. Wednesday 15.30 TSI: USA - Core CPI: Decline from 0.2% to 0.1% is possible. TSI 17.30: USA - Crude Oil Stocks: Increased from -8,010 million to -2,133 million barrels. Thursday 09.00 TSI: Germany- GDP grew by 8.5% a quarter from the previous publication. 14.30 TSI: Eurozone: ECB Monetary Policy Statement TSI 15.30: USA - First Unemployment Allowance Applications: There was a decrease from 787 thousand to 780 thousand. Friday 09.00 TSI: England - Manufacturing Production: It is estimated that it will decrease from 1.7% to 1.0% month after month. TSI 15.30: USA - Core Retail Sales: An increase from -0.9% to -0.1% is projected. TSI 15.30: USA - Retail Sales: May increase from -1.1% to -0.2%.