Ignoring the noise is a super power in markets.
The weakest-minded of investors focus on the gossip, the gossip columns, and the gossip columnists.
Let’s keep it real.
Just because you graduated from an Ivy League school doesn’t mean you’re not a gossip columnist.
As far as investors go, these “news” outlets are the equivalent of raunchy tabloids.
Just because it’s about finance and wealthy people doesn’t change that.
Bromance Is Overrated
During weeks like this one – where Tariff Man broke up with Space Man – humans lose their minds.
The worst investors go wild for the gossip.
The best investors look for opportunity.
And that’s what we did our best to accomplish this week.
We focused on finding opportunities to profit instead of engaging with the childish behavior of weak-minded adults.
We entered into two new positions this week.
Neither one of them were about Tariff Man, Space Man, or their bromance.
TSLA to the Moon
I think Tesla (TSLA) goes higher from here.
It’s still well above our initial entry price. And it’s still well below our upside target.
Remember, this trade doubled in a matter of days, so half the position had already been removed.
Our TSLA trade is one of those free rides where we can’t lose.
The only question is how much are we going to make? We’ll know in the coming months.
Either way, if we didn’t still have that legacy position on, I would be buying this dip.
In fact, I still might.
Why not add to winning positions?
Take a look at the chart of BYD (BYDDY), known as the “Tesla of China.”
New all-time highs for BYDDY scream “rising TSLA prices”…
TSLA and BYDDY have been moving together tick for tick for more than a decade.
Whatever becomes of the bromance between Tariff Man and Space Man, I think these two names are likely to remain in sync.
If BYDDY is hitting new all-time highs and completing this multi-year base, I’m not going to bet against the other one.
This is especially true when stocks are in a bull market. Prices of stocks tend to go up during bull markets.
Tesla being a major consumer discretionary weighting makes it a bull market stock.
We want to do our best to own those.
Stay sharp,
JC Parets, CMT
Founder, TrendLabs