Back in late October, I went public with my overweight position in Tesla. Those that have been trading with me here at TheoTrade know that I like to call it “backing up the truck” when I take on a bigger-than-usual position in a stock. The thing is, now the stock looks so good I might have to say “park the truck.”  I made my initial buy on TSLA back on September 12 at $229.45 live in the TheoTrade chat room. A strong earnings report followed several weeks later on October 23, which led to even more gains for the ticker. . The stock is now trading at new all-time highs, so I wanted to take a moment to recap the trade and update you on what could come next in this market-moving name…  Original Price Target Achieved – What’s Next? I’m going to share my updated analysis on Tesla with

If you tune into the mainstream financial news, you’re probably hearing a mixed bag of reports when it comes to the state of the consumer. Some will proclaim that everything is awesome, while others say a Great Depression is imminent. I would take it a step further and say the doom and gloom is even worse online. When reading these types of reports, be sure to ask yourself ‘qui bono?’ or, “who benefits?” The thing with economic data is that it can be manipulated to suit virtually anyone’s desired narrative. It’s why I prefer to focus on the only metric that pays – price. And after last week’s performance, I think you’ll be intrigued as to the new performance rankings amongst the sectors… Just Accept It: The Market Knows Best If you catch my daily sessions here at TheoTrade, you hear me talk about how time is more important than

If you were around for my live session here at TheoTrade on Thursday, you heard me discuss how the U.S. has grown to account for nearly 65% of the value of the global stock market. Emerging and international markets have been left behind in the dust, and with the U.S. dollar reasserting its dominance as the world reserve currency, prospects for investing abroad are still looking dim. The big question now is whether this is a major contrarian signal to start looking abroad for opportunities. But if not, perhaps we need to re-engineer the way we think about markets to discover the new economic frontier.  Here’s what I mean… The New Economic Era Goes Deeper Than You Think Many of you have been asking me for updates on the Trinity Trade. Rest assured that I haven’t forgotten about you, and in just a couple short weeks, I’ll have a major

It truly is the most wonderful time of the year, not only because of the holiday spirit, but because of the sector leadership movements. Last week saw the real estate sector surge and capture the one-week leader position. I don’t think it’s just because people were home for the holidays, either. Instead, I think it’s a sign that we are heading into a speculative bubble in 2025 – quite possibly one for the record books.  Check this out… Rates Will Revamp Real Estate The recent developments in the tale of the tape offer a good reminder that everything in markets is connected. I like to call it the Principle of Interconnectivity, and it extends well beyond just what’s happening in stocks. In this case, I’m referring to the recent rally in the bond market. I’ve been very vocal in Theo chat about how I’m expecting interest rates, specifically on the

Over the past few weeks, we’ve seen a nice bounce in so-called “inflationary” sectors. Basic materials (XLB) emerged as last week’s leader, and over the past month, the top-performer is energy (XLE). But if you’ve been tuning into TheoTrade’s live sessions, you’ve heard me talking about crude oil’s imminent collapse. And finally, I think we have another catalyst for this move to begin. Check this out… Drill Baby, Drill The incoming Trump administration’s cabinet is now complete, and when it comes to the inflationary conundrum, there are two individuals that I’m watching closely. The first is Chris Wright, who was tapped to head the Department of Energy, and the second is Scott Bessent, who is set to lead the Department of Treasury. To sum up the policies of these two individuals – the plan is to grow our way out of any economic crisis or conundrum. The oil wells are

While Bitcoin dominates today’s headlines, seasoned investors know the financial markets extend far beyond cryptocurrencies. Don’t misunderstand – I remain bullish on crypto and have been for months. However, focusing solely on crypto means missing other significant market opportunities unfolding right now. The foreign exchange market dwarfs all others in trading volume, and a major development is occurring that demands our attention: The Euro, the world’s second most-traded currency after the U.S. Dollar, is making unprecedented moves. Let’s examine what this means… Why Capital Is Fleeing The European Continent The geopolitical landscape shifted significantly last week. The escalating situation in Ukraine, marked by increased missile activity, sparked concerns about potential nuclear escalation. However, as I’ve noted before – if we faced a nuclear conflict, market positions would become irrelevant.  This paradoxically leads some to argue that the “end of the world” scenario actually supports a bullish market stance. Looking beyond

There’s a saying in life that goes, “Don’t judge a book by its cover.” Well, as it turns out, we shouldn’t judge the market solely by the indices either. It amazes me how, after just one week of selling, I’m already starting to see calls for a “Trump slump,” and for stocks to experience a pull back here. Listen, I was bullish well before we knew the outcome of the presidential election, and to be very clear, the market’s bull trend was established before Trump was elected. Once again, the Tale of the Tape never fails to provide answers to the questions on everyone’s mind. Check this out… Banks Buying Themselves The main reason why we look at the sector performance rankings each week is because markets don’t just turn on a dime without any warning. I know the news likes to pretend like nobody ever saw anything coming when

Compared to election week, this one’s been rather quiet as markets digest the announcements of the new administration’s cabinet and policy objectives. Even though this market’s cycle is maturing, remember that, as a rule, any consolidation near the highs of a move tends to be bullish. By now, I’m sure you’re familiar with my tendency to cut out market gossip and focus on what matters the most when it comes to trading: price and time. But I must admit that there’s one particular development in this incoming administration that has my attention. It’s the Department of Government Efficiency, otherwise known as DOGE. It’s being headed up by none other than Elon Musk and Vivek Ramaswamy. Both have strong backgrounds in the private sector. Everyone knows that Washington has a spending problem. Dare I start to dream that reform is near? Before that happens, I can’t help but wonder how this

After last week’s presidential election and Fed rate cut, the public is paying attention to the stock market again. I can’t tell you how many phone calls and text messages I received from friends and family asking me whether it’s time to get back into the market. Fortunately, you and I, we never left the market…  …and now, the market is coming to us. This is exactly the position we want to be in. Right now, we’re seeing more signs that the market will keep coming our way. Have a look… The Consumer Is Back Have a look at the market’s new leading sector across the one-week and one-month intervals – consumer discretionary. This is an exceptionally bullish signal considering that for much of this year, consumer discretionary was underperforming consumer staples. But now, discretionary has left staples behind in the dust. Considering the U.S. economy is based largely on

Wow, what a week it’s been! The election is now over, with Donald Trump emerging as the victor. The Federal Reserve also cut interest rates another 25-basis points, continuing the trend of monetary easing. I went into the election 100% long. This was not because I expected one particular outcome or another. I was just responding to the conditions presented by the market. I periodically receive emails about how I’m preparing for a particular event – the truth is – the method allows me to sail through both calm and stormy waters. There’s been some big movers in the past week, and I want to recap some of these with you. But if you’ve been following my emails over the past couple of months, you’re probably happy with how positions in crypto and Tesla have been performing. Let’s take a look… The New Era Economy is Blossoming I’ve been talking