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The H.E.A.T. Formula is a radically different way to look at investing your portfolio.

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H- Hedges, you should always have hedges and be agnostic as to being long or short. Bonds are not a hedge

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E-Edges, you should always look for edges. Preferably these are edges with some sort of psychological underpinning, structural edges, or some sort of barrier to entry.

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A-Asymmetric. Everything you do, be it trades or your overall portfolio, should be designed so that heads you win a lot, tails you lose a little.

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T-Themes. You should always be invested in the top themes. Most everything else is just noise.

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We will continue to build out our resources here to help. In the meantime we have a model Hedges and Edges ETF portfolio.

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Our Next Webinar will be January 23,2025 at 2pm EST.

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How to Make Money In Markets During 4 Years of Trump

-Three Major Investment Themes Nobody is Talking About

-Why Crypto is a Must Own and How to Trade it With Asymmetric Risk

-Three ETFs That You Want to Almost Always Be Short

-Dangers of Covered Call ETFs and a Better Approach

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Register Below:

https://attendee.gotowebinar.com/register/980141392770803292

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Themes

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AI

Looks like the big news of the day is going to be Broadcom earnings, specifically the conference call. CEO Hock Tan told investors what they should have already known, AI is going to be big.....

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“We see our opportunity over the next three years in AI as massive. Specific hyperscalers have begun their respective journeys to develop their own custom AI accelerators or XPUs, as well as network these XPUs with open and scalable Ethernet connectivity. For each of them, this represents  a multi-year, not a quarter-to-quarter journey. As you know, we currently have three hyperscale customers who have developed their own multi-generational AI XPU roadmap to be deployed at varying rates over the next three years. In 2027, we believe each of them plans to deploy 1 million XPU clusters across a single fabric. We expect this to represent an AI revenue serviceable addressable market, or SEM, for XPUs and network in the range of $60 billion to $90 billion in fiscal 2027 alone…To compound this, we have been selected by two additional hyperscalers and are in advanced development for their own next generation AI XPUs.”

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If you buy breakouts andp ups, then this will be interesting. I will wait for it to settle down and re evaluate.....

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ADBE is a name that could be interesting on a break back above 475.05 which was the November low.

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Quantum

Google’s Quantum Boost Doesn’t Really Compute-WSJ

Alphabet’s sagging stock has been primed for any good news, but quantum computing’s payoff is years away at best

I get it, but stocks are forward looking. Nuclear is also years away, doesn't stop me from trading those names either.

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Watch IONQ here. Looks like it either wants to pull an undercut and rally at the 20 day EMA, or curl down and test the 50 day. Hoping for the former.

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RGTI is a name I would take a look at closer to the 10 day.

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European Aerospace & Defense

German defence ministry presents new National Security and Defence Industry Strategy-Defence Industry

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Joint EU Defence Funding Mulled in Era of Ukraine War, Trump Return-Reuters

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Edges

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Added to my UNG short yesterday on a failure at the 200 day.

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Hedges

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Added a short on regional banks (KRErday.

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Watching Biotech (XBI)

Chart is a bit noisy.