I'm constantly on the lookout for opportunities where market participants are most vulnerable.
If our data suggests that a market is too extended in one direction, I want to find ways to profit from an unwind in that positioning.
You saw it recently with how well we've done in our China trades, where 8 out of 8 trades since the election have all at least doubled in value. Think about how much money we've made in these stocks, despite any selling pressure you've seen in the United States recently.
It's not about the fundamentals. It's the positioning. No one owned Chinese stocks, and so the squeeze was on!
Last summer when all the libs were upset with Elon becoming besties with President Trump, we saw a tremendous opportunity to fade their negativity.
See: Long Tesla and Long Elon (June 14, 2024)
Tesla and Elon immediately went on to create more shareholder value during the back half of last year than any other stock on the planet.
Talk about one for the good guys!
Now fast forward to mid-March of 2025, the present, and I think there's a similar opportunity brewing in shares of Tesla once again.
I was on the phone with normies yesterday, and it shocked me just how upset they are with Elon Musk and Tesla. They were talking about boycotting twitter and how one of their college professors apologized for using Tesla as a case study in their masters program.
I'm not the type of person who follows the "news". So it caught me a bit off guard just how upset they were with Elon.
Coincidentally, this Friday I saw a Tesla commercial online and noticed that my friend's husband was actually featured right at the beginning of it. So I texted her and asked if that was in fact her husband in the Tesla commercial because I found that so funny, and random.
Her response was that yes, it was him. But added, "It seemed a lot cooler before Elon went crazy".
When I see emotions like this from civilians, especially when I didn't see it coming at all, that kind of sentiment stands out.
And just look at the stock. Tesla has retraced exactly 61.8% of the entire rally off the late 2022 lows. Do you think just that's a coincidence?
Also notice that key reversal this week, right at that key retracement level:
