Table Source: Jeroen Blokland Twitter, Jan. 7, 11:20 P.M.

Rioters stormed the Capitol Building and disrupted the certification of the US presidential results. The Democrats won the two Senate seats up for grabs in Georgia. Friday’s payrolls report showed that the US shed 140,000 jobs in December. All three of these events could have – and should have – caused the stock market to drop.

Despite Democrats taking control of the Senate therefore giving them complete control of Washington, a riot at the Capitol that was egged on by the current President, and a negative jobs report, the stock market had a terrific first week of 2021 (S&P: +1.8%, Nasdaq: +2.4%, and Russell: +5.9%).

Shares of Tesla Inc. (TSLA) surged 25% on the week, adding almost $200 billion in market cap and bringing it within spitting distance of a $1 trillion valuation. Blokland’s chart above was created Thursday and thus doesn’t take account of TSLA’s +7.84% on almost 2x average volume on Friday, which likely pushed Elon Musk’s net worth over $200 billion.

In a tweet accompanying the TSLA chart below, Walter Deemer quoted Bob Farrell: “Parabolic advances usually carry further than you think, but they do not correct by going sideways."

Chart Source: Walter Deemer Twitter, Jan. 8, 7:44 A.M. PST

The other leading poster boy for the mania currently raging through financial markets is Bitcoin (BITCOMP), which surged through $40 thousand last week.

Chart Source: Arun Chopra Twitter, Jan. 7, 8:31 A.M. PST

But the speculation is not limited to these two assets. In fact, it’s almost anywhere you look. For example, shares of Baidu (BIDU) are up 81% in seven weeks, including a +15.57% move on Friday on almost 4x average volume. Why? Speculation that they will enter the electric vehicle (EV) market.

Meanwhile, it was a bad week for America. The Democratic wins in the Georgia Senate runoff races give them control of Washington. That means an increased likelihood of higher capital gains and corporate income taxes, increased spending on things like clean energy, a push towards socialized medicine, and increased regulation of business.