Two charts have my attention this week.
I’m watching the Roundhill Magnificent 7 ETF (MAGS):
Shout-out to our friends over at Roundhill. Those are nice guys over there.
These are the stocks in the Magnificent Seven
I’m looking for this bull flag to resolve higher – leadership by the Mag 7 is further confirmation this bull market is intact.
I would caution that if this bull flag is not that, and this consolidation resolves lower, it would likely be a headwind for U.S. equities over the near to intermediate term.
But, if this is just a continuation of this current ripper of a bull market, then expect fireworks.
Especially from some of the most-hated names…
And everybody certainly hates Tesla (TSLA) and their CEO Elon Musk:
But that’s why I love it. I don’t care about politics. And I know nothing about electric vehicles.
This is about maximizing shareholder value. And price.
Also, I think TSLA can go to $1,000. That would make it the biggest publicly traded company in the world.
That’s the upside.
How quickly people forget that just a few years ago, TSLA went from about $80 billion in market-cap to more than $1.3 trillion in about 18 months.
If a CEO’s job is to increase shareholder value, then no CEO in American history has done it better than Elon Musk.
Here’s how I see it…
If the stock ran 3,000% into this consolidation, I would expect a similar type move upon completion of this well-deserved digestion of those gains.
So, yes, biggest company ever?
That’s definitely in the cards.
We’re long and may even buy more TSLA this week.
Stay tuned…
[MAILBAG]
This Week in Everybody’s Wrong
On Monday, we talked about how humans are crazy.
If we’re not trying to profit from their irrational behavior – particularly in public markets – then what are we even doing here?
Here’s why we love energy at these levels.
On Tuesday, I shared some thoughts onPalantir (PLTR) CEO Alex Karp’s new book. It’s a good read.
It’s funny how Alex Karp – just about the biggest badass in financial markets right now – hates on consumer apps.
Here’s why we bet on smart tech AND dumb tech.
On Wednesday, we celebrated my friend Perth Tolle, the founder of Life + Liberty Indexes.
You know something is good when the builder feels so intensely the need for it to exist that they build it themselves.
Here’s why we love the Freedom 100 Emerging Markets ETF (FRDM).
On Thursday, we met Senior Analyst Jason Perz, a key part of the TrendLabs team.
Jason sees something happening with Bitcoin, and I thought you might profit from his perspective.
Here’s why Bitcoin’s breakout is a big “risk on” signal for the broader market.
On Friday, we revisited “The S&P Becky 10 Index,” a basket of stocks based on a 2009 Harvard Business Review article about the “female economy.”
It’s a solid strategy, buying the stocks of companies where women spend a lot of money.
Here’s why my friend Jeff Macke has come up with something even hotter than The Becky Index.
where women spend a lot of money.
On Saturday, we spilled some secrets about the Federal Reserve and interest rates.
Everybody’s wrong about what the Fed lowering its benchmark rates means for real rates.
Here’s why rates only started to go up when the Fed started to lower rates.
Have a great Sunday.
I’ll see you Monday morning…
Stay sharp,
JC Parets, CMT
Founder, TrendLabs