Person of the Year Cover Gets Sold

In what could easily have triggered another gamma squeeze frenzy higher in shares of Tesla this morning, especially with many adamantly calling for a holiday rally into New Year's Eve, TSLA is off by 5.5% as I write this and losing both the key $1000 level and its 50-day moving average despite CEO Elon Musk being named Time Magazine's, "Person of the Year."

On the TSLA daily chart, below, you can see as much. True, the week is young. And if the FOMC later this week turns out to be a nonevent for markets we could see volatility get crushed into year end while names like TSLA enjoy another hurrah before the calendar flips.

However, all we can do is analyze the market before our eyes. And when we do, the selling this morning has already erased most or all of the gains we saw late last week, all the while the small caps and ARKK continue on lower. 

On that note, given the PFE for ARNA deal, seeing the XBI ETF flip red is not too inspiring, especially considering how beaten-down biotechs have been. 

Overall, last week's relief rally inspired a great many market players and pundits to call for a seemingly inevitable holiday rally ahead. Much will now hinge on how hawkish the market interprets Powell to be on Wednesday. But given this morning's price action, you can see that the all-clear signal may not have been as strong as many have insisted.