| Friday, February 14, 2020 1. Stocks have taken off so far in 2020 2. The other company heading to space 3. Will Home Depot continue to rise? Market Moves Despite the increased volatility that has infected the markets of late, 2020 has seen stocks, quite literally, launch higher. One stock in particular has had significant influence over all others: Tesla (TSLA). The following chart helps clearly define the impact that this stock has had on the rest of the market.
Ever since investors have decided to stop thinking of Tesla as the high-end-electric-car company and instead catch on to CEO Elon Musk's vision of Tesla as a take-you-and-your-satellite-to-space company, the stock has seen a dramatic rise in price. That feverish demand for TSLA shares has spilled over into other stocks, including the FAANG stocks. That may be, in part, because of two newly-popular exchange-traded funds: MicroSectors' FANG+™ Index 3X Leveraged ETN (FNGU) and FANG+™ Index 3X Inverse Leveraged ETN (FNGD).
These funds have seen an increase of activity as TSLA shares began to leave the launchpad last November. Given their nature of being a triple-leveraged instrument, it is no surprise to see FNGU (the bullish one of the pair) up nearly 70% for the year so far. That's because FNGU includes more than the five FAANG stocks, it also includes five others (see list below the chart). Among the most influential stocks in this list is TSLA.   The Other Company Heading to Space The highly accelerated rise in TSLA shares has drawn a lot of attention from traders, but there is another company rising similarly in its wake. Famed British Billionaire Richard Branson founded space-tourism company Virgin Galactic (SPCE) back in 2004, but with Tesla's recent successes, investors have begun to take its prospects seriously. The stock has well more than doubled since the beginning of the year as it tracks closely with the TSLA share trajectory. 
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Will Home Depot Continue to Rise? If trading on a moonshot seems too pie-in-the-sky for you, perhaps you'd consider a more grounded vehicle. The homebuilder sector, as tracked by State Street's Homebuilder index ETF (XHB) has started well this year. Meanwhile the firm's Consumer Discretionary sector index ETF (XLY) has done even better. However, one company can be found in the top holdings of both these two ETFs: Home Depot (HD). If both of these sectors continue to climb, shares of HD will build on that momentum and rise higher.  The Bottom Line While stocks edged into positive territory on the day, a longer look back shows that stocks have started surprisingly strong. Tesla has had a roundabout influence on the Nasdaq and other stocks. But a subtle surge is also happening among homebuilder stocks, including Home Depot. How can we improve the Chart Advisor? Tell us at chartadvisor@investopedia.com
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Friday, February 14, 2020
Flying High
