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Rocket Equities & Options Report 04-25-24
Tesla got quite a pop this week on their earnings, as we gave back our gains, but I still like the short, and we got a nice entry allowing us to hold for now. Keep your stop in place, but the pop in the stock is all about the story told, and has nothing to do with the actual metrics, and the reason for our short is that I think the metrics have finally caught up with TSLA and the story is no longer enough to propel the equity higher. We get PCE, the Fed’s preferred inflation gauge, tomorrow morning....
Rocket 04-18-24
Markets have been a bit shaky this week as the data seems to indicate that the Fed won’t be able to cut as quickly as some had, in hindsight, unreasonably expected or hoped. We are still sitting with the ES above 5,070, even as rates seems to me stuck in a much higher for longer prognosis, which is only made possible because of the underlying strength of this economy and earnings. The 10 year yield is currently at almost 4.6%. Our Tesla short has worked out well so far, but keep your stop in place as we all know anything...
Rocket Equities and Options Report 04-07-24
Markets have continued higher, even with yields rising back to higher levels and a strengthening dollar in recent months. You can see from the charts below how yields bottomed out at the start of the year, correlating to the DXY reaching almost the 100 level. Since the start of the year, this market has plowed higher, even with rising yields, the Fed pushing back cuts, and a strengthening dollar. Earnings and a strong economy have proven so far they can handle higher yields for longer, and the stronger dollar that comes along with such a scenario, although we saw quite...
Rocket Equities and Options Report - New Trade Short TSLA 04-05-24
This market is on fire with a hot jobs number this morning. It appears as if the market is ok with higher yields for the time being if the economy can handle it, which all signs seem to appear is the case. TSLA, on the other hand, is a mess. I've been talking about on my program that TSLA could have a severe multiple compression at some point in the near term, and the entire EV market has a huge demand problem. We are going short TSLA with the Direxion 1:1 TSLA Bear ETF. Direxion is a sponsor, but that doesn't...
Rocket Equities & Options Report 04-04-24
Markets have turned to the downside today, as we have the VIX spiking and fear finally coming into this market. Gold may be just at the start of this real run, and you may have some real time here. Things look dicey today, but we are still sitting at market highs, Gold is just above its consolidation area that it sat at for the last 3.5 years ago, and yields are sitting at about 4.31% for the 10 year. I will have another update tomorrow as we see how this market finishes today and opens tomorrow. Stay tuned for...