US stocks edged higher overnight ahead of the US Independence Day holiday with a +6.9% rally by Tesla (TSLA US) leading the gains. While we believe the NYSE FANG+ Index will test the 8000 level in the coming weeks, MM’s preferred scenario is this will prove to be a breakout to initially fade with a pullback similar to the one in March our preferred scenario.
- We believe the NYSE FANG+ Index is poised for a period of consolidation in Q3 – another reason why investors should consider their portfolio mix.
MM is neutral toward US Tech stocks
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Tesla Inc (TSLA US) rallied +6.9% overnight after reporting record quarterly sales helping the overall battery & EV sector. TSLA is a volatile beast but at this stage, we believe it’s a “buy into dips” as opposed to chasing strength with some good news already priced into the share price after its significant rally from its 2023 low.
- We anticipate a period of consolidation for TSLA in the $US250-300 area.
MM is neutral towards Tesla short term
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