Tesla (TSLA) stole the headlines last week after their earnings report, and its surge higher sent shockwaves across the entire market.Anyone with a 401(k) or any sort of retirement plan likely owns Tesla in some way, shape, or form. Not only is it part of the Magnificent Seven, but it also is owned by countless fund companies.Think about it like this – every time someone dollar cost averages into a tech or total stock market ETF, some shares of Tesla are being bought.Let’s take a look at what this surge did to the sector leadership rankings…
Risk-On Sectors Seek Leadership
Last week, we saw consumer discretionary (XLY) recapture the one-week leadership position. Financials (XLF) also came back as the one-month leader. XLY reassuming near-term leadership is a bullish signal.Tesla makes up over 14% of the XLY fund. So, it’s not hard to see why it emerged as the near-term market leader.Think about what Tesla does and how its rebound is a good sign for the stock market.Consumers won’t buy cars if they don’t feel confident about the future. But Tesla is more than just a car company. They’re a leader in artificial intelligence and battery power technology.So, if a stock like Tesla is just starting a breakout, it’s probably not a bad sign for the economy either.As always, I’ll keep you posted.More By This Author:Good Trading Is About To Get Better
Back Up The Cyber Truck For This Stock
It’s All About Oil And Energy Versus Gold And Inflation
