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 is possible with that equity. It’s pretty remarkable the board thinks it’s appropriate to still pay him $50B+ as the ceo when the company has vastly underperformed the entire stock market, as if somehow they can’t fill that role with anyone else qualified without spending an ungodly amount of money. Don’t get caught up in the stories of robo taxis or whatever else gets said in the public, the ev market is in trouble right now and it may eventually catch up with Tesla, and Elon may eventually decide to pursue his larger endeavors at another company with a bigger piece of the eventual pie. You don’t become the richest person in the world built on current earnings and dividends, you do it built on a fantastical estimate of future growth, and I think that ship may have sailed at Tesla for the time being. 

Disney has pulled back a bit with the market but I still like the set up; we are just consolidating near the highs of the initial breakout.  

Stay tuned for updates! 

Equity trades:

Long TSLS - TSLS Direxion Daily TSLA Bear 1X Shares - at $26.55. Stop is $22.10. TSLS is trading at $29.19.

Long 1/2 position in DIS at $98.75. We will look to add to this position in the future. DIS is trading at $112.94.

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