The rotation into Consumer Discretionary is happening.
And isn’t this exactly what we’ve always seen in bull markets?
You buy the pull back in the offensive sectors during bull markets.
That’s literally what the BTFD stands for.
This rotation into Consumer Discretionary has been exactly that – a BTFD moment.
Look at Tesla up 10% today and up 30% since we highlighted the trade right here 2 weeks ago.
And as well as Tesla has done, I think it’s just getting started.
I believe this whole rotation back into Consumer Discretionary is still in early innings.
Look at Amazon making new all-time highs out performing the S&P500 the past 10 weeks.
Tesla is obviously an outlier outperformer here. But it’s the group.
Tesla was a great example of well defined risk parameters combined with exponentially greater reward if we were correct.
We also had the chance to sell put options against 165 to collect additional income last month.
I remember talking to the team about whether Tesla was on the naughty list, which includes stocks we just would never want to be short naked puts on. Things like Small Chinese ADRs or Biotechs, for example.
But for Tesla, despite the impact that a crazy version of Elon could have on the stock, consensus among the team – Sean, Strazza, Alfonso etc was that Tesla was good to go.
Sell the puts.
And so the income trade worked. The long trade is working. And I believe there will be more opportunities in both the near and distant future for Tesla.
This story is far from over.
We’ll be here talking about it every day and presenting the trades when the come.
You can check out the current opportunities in last night’s LIVE Monthly Charts Strategy Session.
You can watch the replay here, download the slides, and review each of the new trade ideas with best entry points and price targets.
Check all that out here and then let me know what you think!
JC
What’s the Major Trend?
And what are we going to do about it?
Those are the only two questions that matter. We answered them last night.
We covered every major asset class and the best actionable ideas for this market.
ASC Premium Members, click here to review the Monthly Strategy Session.
If you’re not an ASC Premium Member, click here or call Mary at +1 (323) 421-7910 to get access to that information RISK FREE.
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