The H.E.A.T. Formula
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Please register for: The Best Investment Themes Post Election
on Nov 21, 2024 11:00 AM PST at:
https://attendee.gotowebinar.com/register/8455197581530760535
Matthew Tuttle will discuss:
Three below the radar investment themes that have nothing to do with AI.
How to design trades for asymmetric returns.
How to profit from the Fed’s stupidity.
Why bonds are a stupid investment and what to do instead.
If you would like CFP™ education credit (½ hour), please email pneville@tuttlecap.com your CFP™ID number.
If you can't make the live webinar, register and we will send are cap.
For investment pros only.
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Tuttle Capital just broke above $3bn in AUM. Thank you to all our clients and partners pic.twitter.com/HgcG7WE3Vs
— Matthew Tuttle (@TuttleCapital) November 11, 2024
“We’re waiting to buy the election dip for our clients as it likely will be contested, we are UW risk / short small-caps as a hedge in case Trump wins as well”
— Eliant Capital (@eliant_capital) November 12, 2024
1 week later: pic.twitter.com/eB9tk2E38q
Themes
Trump Trade
The Trump trade was alive and well yesterday. TSLA and anything crypto related soared. We saw massive inflows into inverse TSLA ETFs (including ours) as it looks like traders think a 43% 4 day gain is a bit much. I personally took profits on my TSLA position but won't flip short. Good commentary on TSLA this morning from Mike O'Rourke....
Since its earnings release 3 ½ weeks ago, Tesla shares rallied as much as 70%. We can understand the short covering since there is no choice there, nonetheless, the move is beyond bubbly. We understand Elon Musk was pivotal in the election, but adding $345 Billion in market capitalization in 4 sessions is like adding a Bank of America. Musk has proven he is capable of amazing things, but Tesla is still a company that needs to execute in the real world. Interestingly, since Musk acquired Twitter, all we have heard was about the demise of the platform. Today it would appear the X platform was the next biggest election winner after President Trump. The market may be chasing the wrong Musk asset.
Interestingly TSLA and MSTR were up when I started writing this, they are now selling off.
I will be closely watching gold miners, silver, and silver miners. All have gotten crushed since the election and I think it's overdone. I still believe the Fed is behind the curve and that is a positive for precious metals. I think precious metals and crypto can rally at the same time. However, I am not going to get in front of this move, at some point it will settle, until then I won't be trying to catch any falling knives. This is also likely having an impact.....
The “Euro swap cash basis” is negative for the first time since its creation in 1999.
— BowTiedMara (@BowTiedMara) November 9, 2024
It reflects the difference in cost between borrowing money in euros and the cost of swapping it to another currency, like U.S. dollars.
When it’s negative, it means borrowing in euros and… pic.twitter.com/MaVj3xjmpJ
EU Aerospace & Defense
EU moves to reassure Ukraine of 'unwavering support' after Trump win-Reuters
Donald Trump committed to NATO and is right to push Europe to increase funding, UK defence secretary John Healey says-Sky News
AI Power Generation
One of my favorites....
$EQT
— TheUndefinedMystic (@pennycheck) November 11, 2024
Put aside all the positive tailwinds for the largest nat gas producer in north America from Trump 2.0
No company is better set up to cash in right away on the AI/ Data Center boom than $EQT
The AI Data Center Boom The rapid expansion of AI technologies is driving an… pic.twitter.com/2QyzF7uhRU
Way overextended with everything else though...
Hedges
Going to be looking for spots to short some of the recent high fliers, especially the non household names. With everything so extended, I think this maybe the best opportunity out there right now.
All the garbage that has been running the last week? There's going to be REALLY fugly reversal candles here... be in quality - We're taking out the trash
— ShortSeller (@ShortsellerST) November 12, 2024
A couple that I bought puts on yesterday....
