10Feb3:38 pmEST

Big and Little; One in the Same

Regardless of your market bias here, be it wildly bullish, bearish, cautious but unsure, or simple staring your screens saying, "Whoa" on a daily basis, my view is that we should all be monitoring two parts of the market for actual pulse on risk appetite: TSLA, no longer an up-and-comer but a massive, $770 billion market cap firm, and the micro-caps as a whole housed in the IWC ETF, updated below. 

Tesla, of course, has plenty of broad market implications these days, long seen as a momentum leader and the wave of the future. But, then again, the future has been now, with TSLA added to the S&P 500 Index and a major position for the breakout star of this bull, Cathie Wood. 

In addition, as we noted earlier the TSLA bet on Bitcoin could easily have major volatility implications going forward. After all, Bitcoin is an extremely volatility asset class and thus it can be imputed to TSLA (and even extrapolated to the S&P!) in time. 

As for the IWC, the bottom pane of the daily chart here shows the heaviest sell volume today in a good while, as the micro caps look to be closing down more than 1% today despite a Powell-led bounce this afternoon in the broad market. 

Going forward, I will continue to key off TSLA and IWC for clues as to whether they are leading the market down into a correction or can continue to momentum party higher. Given the technical circumstance both find themselves in and today's price action on volume, I would be shocked if these two do not telegraph where we go from here precisely. 

Don't Freeze Up Tastes Like Actual Value


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