To The Moon

$Apple(AAPL)$ is on track for its worst month (-11%) in 2+ years. It’s lagging the $NASDAQ 100(NDX)$ by ~10% MTD, its biggest underperformance since Nov. 2018. $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $iShares Russell 2000 ETF(IWM)$ Image

During a Fed cutting cycle, all market dips are buyable so long as the economy remains stable. $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $iShares Russell 2000 ETF(IWM)$ Image

Software, Semis, Energy, and Utilities are seen as the 4 biggest beneficiaries of AI when it comes to Operating Margin expansion. $SPDR S&P 500 ETF Trust(SPY)$ $iShares Expanded Tech-Software Sector ETF(IGV)$ $Philadelphia Semiconductor Index(SOX)$ $VanEck Semiconductor ETF(SMH)$ $Energy Select Sector SPDR Fund(XLE)$ $Utilities Select Sector SPDR Fund(XLU)$

ETF shorts are up +24% over the last month, the fastest pace of shorting since the Feb ‘21 Meme Stock frenzy. Today’s CPI gap up is looking like the start of a larger short squeeze. $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $iShares Russell 2000 ETF(IWM)$ ImageSmall Cap positioning among Fund Managers is currently at historic lows. Everyone is crowded into the Mega Caps. $E-mini Russell 2000 - main 2503(RTYmain)$ $iShares Russell 2000 Growth ETF(IWO)$ $SPDR S&P 500 ETF Trust(SPY)$ $I

Jensen just told us the future: Robots powered by AI.Physical AI will revolutionize our world on a massive scale. Citi forecasts 1.3B AI robots will be moving around us by 2035 and 4B by 2050. This a future trillion dollar + market. $NVIDIA(NVDA)$ $Tesla Motors(TSLA)$ Image

$GeneDx Holdings(WGS)$ - HUGE breakout in this Small Cap AI Genomics name. Approaching +200% gains here!Historically, Small caps outperform when the Fed starts to ease. If we are indeed entering a sustained Bull Run for Small caps, fortunes will be made owning the right stocks. Image13 of the last 14 January’s have seen Hedge Funds add gross leverage 👇👇This is the most bullish time of year for capital flows. $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $GLOBAL X DOW 30® COVERED CALL ETF(DJIA)$ Image

Now is the time when Hedge Funds typically re-lever long. This has happened in 13 out of the last 14 January’s.We are starting from a net short base here in 2025, as HF exposure leans short out of the gate and underexposed to this rally. $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $iShares Russell 2000 ETF(IWM)$ $NVIDIA(NVDA)$ $Tesla Motors(TSLA)$ Image

Historically, the largest capital in the world gets deployed into the US equity market during the first few weeks of the year.January typically sees more inflows than any other month. $.SPX(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $iShares Russell 2000 ETF(IWM)$ $NVIDIA(NVDA)$ $Tesla Motors(TSLA)$

$NVIDIA(NVDA)$ is up >800% since the release of ChatGPT.Yet, it’s STILL trading at a lower Fwd P/E today than it was when ChatGPT was released.The NVDA 8x rally has been driven entirely by earnings growth rather than multiple expansion.ImageThis is NOT what we saw during the Dot Com Bubble…Image

In the 2nd half of 2024, the R2K Tech Index outperformed Mega Caps.I am looking for this trend to continue in 2025 with EPS growth rates expected to narrow between Mega Caps and the field. $.SPX(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $NASDAQ 100(NDX)$ $NVIDIA(NVDA)$ $Tesla Motors(TSLA)$ $Alphabet(GOOG)$ $Alphabet(GOOGL)$ $Apple(AAPL)$ $Amazon.com(AMZN)